How Important Is Asset Allocation to Retirement Security?

IB#12-11

The brief’s key findings are:

  • Financial planners often tout asset allocation to boost retirement preparedness.
  • But the typical household nearing retirement has less than $100,000 in savings.
  • Hence, asset allocation lost when tested against three alternatives: working longer, taking a reverse mortgage, and controlling spending.
  • Even for households with substantial financial assets, asset allocation is less important than one would expect.

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