Upcoming
This paper is in progress. The summary below previews what it will cover; the working paper and a less-technical write-up will be published here when ready.
Target-date funds reduce equity exposure as retirement approaches. The shape of that reduction is treated as obvious. It isn't.
This paper examines the conditions under which the conventional downward-sloping equity glidepath is suboptimal, and derives alternative allocation structures that better match liability profiles under stochastic returns. The result challenges a default that has gone almost entirely unquestioned in retirement-account design.