Build a Retirement Portfolio That Lasts

RELATED CONTENT

What's the Best Asset Allocation Strategy?

Is an asset allocation that starts aggressive and becomes conservative over time better than a long-term approach based on your client's risk tolerance? Or should you use some sort of age-based equity formula? We test these three strategies against real market data to see how clients would fare under each approach.

14 Withdrawal Strategies That Won't Protect, Extend, or Defend Retirement Income

In the quest for lifelong retirement income, many advisors and their clients follow strategies that have yet to be proven. Will a buy-and-hold portfolio hold up for 30 years? (Only if you're lucky.) Will a low-risk portfolio have a longer life? (There's a 60% chance of depletion.) How about buying a term annuity and investing the rest? (Then you face a 56% chance of depletion.) We identify the strategies and their probability of success.

Reduce Volatility via Diversification and Time

You diversify the portfolio with asset classes, but that isn't enough to minimize volatility. You also need time. An approach that combines modern portfolio theory with behavioral finance could help you and your clients get the best risk-adjusted returns possible.

How Correlations Change

Still plugging the same old correlation coefficient into your portfolio optimizer? If so, you're ignoring the fact that correlations move—especially among fixed-income and non-U.S. equity indexes. This chart illustrates how much they've changed over the past 20 years.