How Targeting the Size, Value, and Profitability Premiums Can Improve Retirement Outcomes
12 Pages Posted: 27 Apr 2023
Date Written: April 21, 2023
Broadly diversified equity portfolios that pursue the size, value, and profitability premiums can help investors enter retirement with more assets, better sustain their retirement spending, and pass on larger bequests. Our study finds that even moderate exposure to the premiums can significantly improve retirement outcomes. The results are applicable to the design of retirement asset allocations, target date funds, and managed accounts.
Keywords: Retirement, retirement outcomes, asset allocations, target date funds, managed accounts
JEL Classification: D14, D15, G11, J26
Suggested Citation: Suggested Citation