Constructing Glide Paths in Target-Date Funds with Brett Goldstein, CFA Co-CIO Global Asset Allocation
In this episode, Chris speaks with Brett Goldstein, Brett is Co-Chief Investment Officer of Global Asset Allocation (GAA) and a member of Putnam's Operating Committee. In this role, Bret oversees the strategy and positioning of Putnam's GAA products, including research, security selection, portfolio construction, and risk management. He also contributes extensively to retirement glide path research and GAA's target-date funds.
During the conversation, they touch on many topics, including:
- What makes a target-date strategy successful
- The glide path’s role in retirement planning
- Portfolio construction and risk mitigation
- The savings rate and other variables that affect target-date strategies
- Why volatility is so problematic for retirees
- Inflation, and how it shapes a retirement portfolio
- Behavioral finance
This material is for informational and educational purposes only. It is not a recommendation of any specific investment product, strategy, or decision, and is not intended to suggest taking or refraining from any course of action. It is not intended to address the needs, circumstances, and objectives of any specific investor. This information is not meant as tax or legal advice. Investors should consult a professional advisor before making investment and financial decisions and for more information on tax rules and other laws, which are complex and subject to change.
All investments involve risk, including the loss of principal. You can lose money by investing.
Each Retirement Advantage Fund and RetirementReady Fund has a different target date indicating when the fund’s investors expect to retire and begin withdrawing assets from their account. The dates range from 2025 to 2065 in five-year intervals. The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. This means that both the risk of your investment and your potential return are reduced as the target date of the particular fund approaches, although there can be no assurance that any one fund will have less risk or more reward than any other fund. The principal value of the funds is not guaranteed at any time, including the target date.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.
Putnam Retail Management AD1832581 9/21
You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. This and other important information is contained in the fund’s prospectus available on Putnam.com or by calling 1-833-228-5577. Please read carefully before you invest.
Putnam ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Putnam Investments.
Putnam Retail Management AD2557752 11/22