Asset Allocation


Size, Value and Factor Exposures Improve Retirement Outcomes

Some of the most common questions clients ask advisors revolve around retirement:

  • How should I save for retirement?
  • Will I have enough money to retire?
  • Will I be able to leave something behind for my children or for philanthropic causes?

New research from Dimensional addresses these questions. The study found that investors who tilt towards size, value, and profitability in their equity allocation are likely to enter retirement with significantly more assets, sustain their retirement spending longer, and to leave behind larger bequests than with a standard, broad-market-index portfolio. Given the popularity of broad market indexing, the findings have implications for advisors. Joining us to talk about the research is Mathieu Pellerin.