A new white paper by Roger Aliaga-Diaz, PhD Harshdeep Ahluwalia, M.Sc Victor Zhu, CFA, CAIAScott Donaldson, CFA, CFP Ankul Daga, CFA and David Pakula, CFA
A new paper describes the Vanguard Existence-Cycle Investing Model (VLCM), a proprietary product for glide-route construction that can help in the generation of custom made expense portfolios for retirement as very well as nonretirement plans. Its utility-centered framework incorporates behavioral finance factors such as loss aversion and profits shortfall aversion to examine danger-return trade-offs of several asset allocation alternatives and analyzes the probability of good results and odds of revenue sufficiency.
Dependent on VLCM’s framework, we locate that hazard-aversion amounts are the dominant factor behind the broad inventory-bond split in the glide route, influencing each glide-route slope and ending allocation.
Go through the entire paper here.