About Me: Suzy




An East-Coaster bewildered that I ended up in the Midwest post-graduation. More bewildered that I've come to love it.
[This budget blog chronicles my valiant attempts to make a living off my writing and stay in the black...]
Likes:
vegetables, CSPAN, high heels, travel writing, Anderson Cooper, rooftop bars, watching sports with strangers
Dislikes: monogrammed clothing, people who take pictures of food, my current travel budget, Wednesdays! ugh.

Sunday, July 13, 2008

Financial Dictionary: Glide Path

In reading more of the business sections and financial literature, I’m continually disappointed by the amount of assumed knowledge in the writing. To be expected, probably, but I want to start making the effort to learn more of the vocabulary, as well as the principles behind good investments. Starting with:

Glide path (n.): the rate at which retirement funds change their asset allocations (mix between stocks and fixed) over time
In a sentence: Much of the controversy over target-date retirement funds is due to the lack of consensus around the correct glide path for these funds, and what the right percentage of equity one should have on the day of one’s retirement.
Further reading: Examining the Glide Path Methodology for Target Date Maturity Funds

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