LOAN - Retirement Target Date Allocation Glide Path In-Depth View
We have talked about allocation glide path before, but let’s look at it with additional detail.
First and foremost, remember that your portfolio return will be most significantly determined by your choice of allocation between the three super classes (OWN, LOAN, RESERVE). While some target date funds hold some cash (RESERVE), their allocations are overwhelmingly between OWN and LOAN.
Standard & Poor’s analyzed the portfolio allocations of the target date fund industry for “Through” funds.
“Through” funds continue to annually adjust the portfolio after the target date, whereas “To” funds stop adjusting portfolio allocation once