An investor is well served by incrementally reducing risk with age – a glide path strategy – which amounts to a 1% reduction in the equity allocation of an index portfolio per year over a lifetime. When young investors embark on their careers and start to save money, they are long on human capital and short on financial capital. As investors age and save for their retirement, a natural exchange of human and financial capital occurs. Mark and Tom look at IFA Index Portfolio 90 as an example of illustrating the glide path strategy over time.

Index Portfolio 90