A lifecycle portfolio that automatically reduces risk over time.
Asset allocation
History
Target-date funds became widespread in the 2000s, especially after regulatory changes in the US encouraged their use as default retirement options. They combine global equities and bonds with a glidepath that shifts toward safety as retirement approaches.
Philosophy
Match risk to time horizon. Younger investors hold more equities; older investors shift toward bonds. The glidepath removes the need for manual adjustment.
Implementation
🇪🇸 Spain implementation
Investor using lifecycle funds.
Use target-date UCITS funds or lifecycle multi-asset funds.
Account notes: Availability may be limited vs US.
Costs: Higher than static funds but automated.
Rebalancing: Automatic glidepath.
Tax: Check fund tax treatment.
Product names are implementation examples for research. Availability, taxation, share classes and suitability should be checked with the investor's broker and tax situation.
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