Faculty Publications


Retirement Risk, Rising Equity Glidepaths, and Valuation-Based Asset Allocation

Document Type


Publication Date



This research investigates two types of dynamic asset allocation strategies, predetermined equity glide paths and valuation-based asset allocation, for retirees using U.S. historical data. Based on U.S. historical data, it is difficult to beat a strategy that maintains a consistently high allocation to stocks to the extent that a retiree’s risk tolerance allows for this, and subject to the caveat that high stock allocations cannot always be expected to do as well in the future.