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Liquidating mutual

A 401(k) can be one of your best tools for creating a secure retirement. First, all contributions and earnings to your 401(k) are tax deferred.

At the highest level, this refers to a split between stocks and bonds.

We've listed herein a mix of good articles from the popular press (intended for lay people) and highly technical academic papers.

Hopefully, these materials will elucidate more than they confuse.

This study concludes that strategic asset allocation only explains about 77.5% of the variability of portfolio returns, not 90 % as suggested by Brinson et. This study suggests that, in order to minimize shortfall risk, it may be appropriate for investors to maintain 100% stock allocations well into their retirements (i.e., as late as age 75 for men and 80 for women). Kaplan, "Does Asset Allocation Policy Explain 40, 90, or 100% of Performance? Consumers are increasingly being led to believe that use of a Monte Carlo simulator accurately projects the probability of meeting their financial goals. We believe that Monte Carlo simulators may be useful in educating clients about the nature of risk and return tradeoffs, but they certainly shouldn't be counted on to determine one's asset allocation.