PT - JOURNAL ARTICLE AU - John M Clark AU - Matthew Hood TI - Policy Implications for Modeling the Next Generation of Target Date Funds AID - 10.3905/JOI.2009.18.3.053 DP - 2009 Aug 31 TA - The Journal of Investing PG - 53--61 VI - 18 IP - 3 4099 - https://pm-research.com/content/18/3/53.short 4100 - https://pm-research.com/content/18/3/53.full AB - This article outlines some policy parameters for designing a new investment vehicle, with similar features to today’s target date fund that is specifically designed for investors in the withdrawal phase. Since these portfolios appeal to less informed investors, it is recommended that target date funds for the withdrawal phase be designed to provide a set real withdrawal rate. Investors should seek professional advice, either through firm-provided professionals or outside advisors, on the appropriate withdrawal rate class of funds, based on their personal financial situation, legacy goals, and life expectancy. Consistent with the results of Merton [1969] and Samuelson [1969] portfolio managers should maintain a constant allocation to equity to minimize the probability of shortfall risk for these clients.TOPICS: Long-term/retirement investing, legal/regulatory/public policy, portfolio management/multi-asset allocation