It is well known that an investor’s asset allocation strategy (how much they allocate to different asset classes) has a tremendous impact on performance, risk, and their final wealth outcome. The decision is so important, defined benefit plan trustees tend to make tremendous investments of time and expense to develop appropriate strategies to meet their plans’ objectives.

Asset allocation is no less important for an individual investor in a defined contribution plan, like a typical 457 deferred compensation plan. However, most individual employees lack the specialized skills and time required to study the problem; they are also rarely willing to pay the fees required by expert planners. The result is that many fail to take full advantage of the opportunities presented by their retirement plan.

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  • August 12, 2007 Create Date
  • January 21, 2020 Last Updated
Guide to Lifestyle/Lifecycle Funds for Asset Allocation