Research and Analysis by Dale Kintzel

Portfolio Theory, Life-Cycle Investing, and Retirement Income
Policy Brief No. 2007-02 (released October 2007)
by Dale Kintzel

There has been much discussion recently about life-cycle funds and their role in providing a secure retirement income for older Americans. These funds, which gradually shift account assets from broad-based stock funds to bond funds as a participant ages, are becoming an important vehicle for retirement savings. This policy brief explores the economic rationale behind the life-cycle approach and the advantages and limitations of life-cycle funds.