Glide Path

Retirement

A glide path is the systematic shift of asset allocation from aggressive (more stocks) to conservative (more bonds) as you approach retirement, encoded in target-date funds and many advisor portfolios. Typical glide path: 90% stocks at age 25, dropping to 50% stocks at age 65, and stabilizing at 30-40% stocks deep in retirement. The rationale: longer horizons can absorb volatility for higher returns; shorter horizons require capital preservation. Critics argue many glide paths become too conservative too early, jeopardizing 30+ year retirements. Compare different target-date fund providers — Vanguard's glide path holds more equity than Fidelity's, materially affecting expected outcomes.