The future of true asset allocation may lie in understanding its past.
The results are in. Asset allocation doesn’t work in the long run. Rebalancing doesn’t produce better returns in the long run. In short, asset allocation as popularly practiced is myth.
There’s a reason why short-term asset allocation is doomed to disappoint. You can find it in every SEC-mandated performance disclaimer.
Much of asset allocation marketing collateral is founded on a simple misinterpretation, yet this myth persists. Why?
Are our expectations of Asset Allocation too high?
Here’s a win-win idea for both 401k investors and their fiduciaries.
The false promise of “safety” may lure unsuspecting 401k investors into the most dangerous trap they’ll never see – until it’s too late.
Two easy actions to take right now to give 401k investors a better chance to achieve their retirement goals.
A lurking liability within the bowels of the DOL safe harbor provision, prudence demands 401k plan sponsors cannot overlook this Deadly Sin.
Some practical advice to 401k investors that relies on real world results rather than just on academic studies.