How Targeting Size, Value, and Profitability Can Improve Retirement Outcomes
October 16, 2023 Author: Mathieu Pellerin, PhD, Senior Researcher and Vice President
Discover how targeting size, value, and profitability in your retirement portfolio can lead to significantly improved outcomes. In a study by Mathieu Pellerin, Ph.D., a Senior Researcher and Vice President, it is revealed that broadly diversified equity portfolios focusing on these factors can increase retirement assets, extend retirement income sustainability, and potentially result in more significant bequests. These benefits are attainable with minimal additional risk compared to traditional market portfolios. The research presents compelling evidence that core equity portfolios, emphasizing size, value, and profitability premiums, can outperform standard market portfolios during the accumulation and retirement phases. It's an insightful exploration into a practical alternative to traditional market indexing for retirement planning, showing that the potential rewards far outweigh the costs of tracking errors. Always advise a Financial Planner when reviewing your retirement options.