Target-date funds lead to defined contribution plan members taking more risk and becoming more diversified than they would be if left to their own devices. But despite these benefits, TDFs fail to provide what members really want and need — a reliable income replacement for life managed by somebody else. My colleague Ioulia Tretiakova and […]
Originally from our sister publication, Advisor.ca. In the now-iconic scene set in Katz’s Delicatessen in New York City, a woman of some years mischievously asks her waiter to bring her the rye and pastrami sandwich she assumes was responsible for Meg Ryan’s character Sally’s head-turning display of euphoria. Portfolio envy is a lesser-known form of […]
First published on Advisor.ca. This is Part 2 in a series on pension investing using ETFs. Read Part 1 if you missed it. Target date funds (TDFs) or lifecycle funds simplify investing by automatically reducing equity exposure as a target retirement date or a student’s anticipated university enrolment approaches. TDFs are the hottest segment of […]
Joe and Sally joined the same company right out of school and enrolled in the registered group savings plan. Sally was three months older than Joe and retired September 1, 2008 with a $600,000 portfolio. Joe’s portfolio was worth only $480,000 when he received his simulated gold watch a few months later. Had they been […]
Shortly after takeoff from Heathrow, the pilot’s voice crackles through the cabin. “Flying at an altitude of 35,000 feet, our time to New York City will be 7 hours 56 minutes. Stronger than expected head winds are possible so we may be landing up to 1,200 miles short of the airport. Nevertheless, we are pleased […]