target-date funds
The notion that choosing active or passive will in some way lower fiduciary risk is unfounded.
By far the biggest hurdle to handicapping or investing is recognizing when basic conditions have changed, be they rule changes, unexpected weather, personal issues of the professionals, or any number of other fluctuations. From an investment viewpoint, I believe 2015 experienced such cumulative changes that made many of our old approaches less useful.
What is the optimal amount of risk a client should have in their portfolio throughout their career? This is not an easy question to answer, so it is not surprising that there are many different responses. Target date funds (TDFs) are, in theory, simple products that allow clients to focus on a single question: “How old am I?”
The benefits of meditation are well-known and have been espoused by some of the world's most successful investors and innovators. Indeed, even business schools are starting to include meditation in their curricula.
Charlie Munger once said: "In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none. Zero. You’d be amazed at how much Warren reads — and how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”
Although target-date retirement funds are a ubiquitous retirement planning tool, their glide paths vary considerably from one provider to the next. Moreover, the glide paths themselves tend to change over time. Thomas M. Idzorek, CFA, discusses the problems associated with benchmarking these instruments and outlines a glide path stability score.