It was crucial, the firm said, that a person’s retirement strategy considered existing savings levels, risk tolerance and demographic factors which would help them accumulate risk-adjusted returns.
This was particularly important in an era of low interest rates and rising inflation which could erode returns.
Vidya Rajappa, American Century Investments head of portfolio management for multi-asset, said: “It’s a period we deem the ‘transition risk zone’, and retirement strategies with a specific target date often come with a high degree of equity exposure that can inflate this level of risk.
“For this reason, a flatter, more risk aware ‘glide path’ in this zone can help minimise transition risk. Having downside protection during these years better reflects actual risks and investment horizon many investors face. The idea that you set and forget your retirement allocation and stay fully invested until the time you think you’re going to retire is no longer a sufficie
It was crucial, the firm said, that a person’s retirement strategy considered existing savings levels, risk tolerance and demographic factors which would help them accumulate risk-adjusted returns.
This was particularly important in an era of low interest rates and rising inflation which could erode returns.
Vidya Rajappa, American Century Investments head of portfolio management for multi-asset, said: “It’s a period we deem the ‘transition risk zone’, and retirement strategies with a specific target date often come with a high degree of equity exposure that can inflate this level of risk.
“For this reason, a flatter, more risk aware ‘glide path’ in this zone can help minimise transition risk. Having downside protection during these years better reflects actual risks and investment horizon many investors face. The idea that you set and forget your retirement allocation and stay fully invested until the time you think you’re going to retire is no longer a sufficie
Stocks drop on fears COVID variant threatens economy s recovery cbsnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cbsnews.com Daily Mail and Mail on Sunday newspapers.
As stock prices peak, markets begin to fear threats
Trader John Doyle works July 16 on the floor of the New York Stock Exchange.
AP Photo/Richard Drew
NEW YORK With the U.S. economy humming, corporate profits flowing and stock prices peaking, investors on Wall Street are beginning to pose an anxious question: Is it all downhill from here?
Financial markets are always trying to set prices now for where the economy and corporate profits are likely to be in the future. And even though readings across the economy are still at eye-popping levels, investors see some areas of concern.
Jennison Associates poaches head of ESG from American Century citywireselector.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from citywireselector.com Daily Mail and Mail on Sunday newspapers.