Missing piece. getty During market pull-backs, investors in different generations tend to behave differently. Plan participants close to retirement are more inclined to prematurely exit the market and younger people tend to remain invested. Market, “sequence of returns” 1 and longevity risks address those concerns; but longevity risk has likely been the most influential factor over the past several years, leading to higher equity allocation across many target date glide paths. “Gliding” down the glide path does indeed work and puts participants in auto-pilot as they age and take less equity (stock) risk. However, regardless of what their stock […]
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