Dynamic DC: Keeping Your Options Open

12 Pages Posted: 29 May 2013 Last revised: 21 Oct 2018

Date Written: May 28, 2013

Abstract

Retirees face a tradeoff between two goals, payment certainty and liquidity. Annuities address the former at a cost of the latter. This article lays out an investment approach that aspires to achieve both goals. The heart of this approach is a dynamic investment strategy aimed at sustaining a steady income stream while also minimizing the risk of running out of money. The result is a defined-benefit-like outcome in a defined contribution pension-plan structure.

Keywords: Decumulation, Defined Contribution, Life-Cycle Fund, Pension Fund, Target-Date Fund

Suggested Citation

Yamada, Mark S. and Tretiakova, Ioulia, Dynamic DC: Keeping Your Options Open (May 28, 2013). Rotman International Journal of Pension Management, Vol. 6, No. 1, 2013. Available at SSRN: https://ssrn.com/abstract=2271206

Mark S. Yamada

PUR Investing Inc. ( email )

309-1179 King Street West
Toronto, Ontario M6K 3
Canada

Ioulia Tretiakova (Contact Author)

PUR Investing Inc. ( email )

309-1179 King Street West
Toronto, Ontario M6K 3
Canada

Register to save articles to
your library

Register

Paper statistics

Downloads
100
rank
249,248
Abstract Views
960
PlumX