Researchers often assume that retirees make decisions only at or just before retirement. But retirees and their financial advisors can dynamically adjust strategies over time. Doing so improves the likelihood of financial success in retirement.This presentation will explore:•Why dynamic models result in higher retirement-spending rates•Which withdrawal approaches work best•Why annuities are less important in a dynamic framework•How to make optimal portfolio allocations
DALBAR’s report is commonly cited as “proof” that mutual fund investors have historically made poor market-timing decisions. While DALBAR does not publicly disclose its approach, in this article I use a transparent and industry-accepted methodology, based on publicly available data, to demonstrate that investors’ returns have not been nearly as bad as DALBAR claims.