Ortec over Life Cycle Investing

From target date to goal based investing

In the design of a dynamic goal based investment strategy it is important to target the liability, usually the retirement income, instead of only the investment horizon. Consequently, the realized returns during the life cycle period have to be taken into account, besides the individual goal(s) of the investor. In comparison with the traditional asset-only and static life cycle approaches, a dynamic goal oriented strategy will lead to a greater probability of reaching the objectives; a reduced downside risk of not reaching the goals by a target date; and better management of the expectations of your client.

The ultimate goal of the goal oriented dynamic allocation strategy is to manage the expectations of the clients. With continuous monitoring and delivering transparency and effective communication about risk and return the client is involved in taking the right decisions.

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