Practical Applications of “Flexicure” Retirement Solutions: A Part of the Answer to the Pension Crisis?

Practical Applications Summary

In “Flexicure” Retirement Solutions: A Part of the Answer to the Pension Crisis?, from the July 2019 issue of The Journal of Portfolio Management, authors Lionel Martellini (of EDHEC-Risk Institute), Vincent Milhau (of EDHEC-Risk Institute), and John Mulvey (of Princeton University) introduce a range of goal-based retirement investing strategies that allow for both security and flexibility. They describe such strategies as “flexicure,” a portmanteau of “flexible” and “secure.” The authors also describe how combining bonds, annuities, and equities can lead to improvements in the use of existing multi-asset products for retirement investing. They explain how to apply principles of goal-based investing in the retirement context and highlight the benefits of their strategies.

TOPICS: Retirement, portfolio construction, quantitative methods