The Pre-Retirement strategy is just that – management of the portfolio’s transition from employed to retired. Investors in this strategy need to be within 10 years of retirement and need to know the specific year they plan to retire.
CLS customizes portfolios using its Pre-Retirement strategy by creating a glide path based on the investor’s current risk tolerance in addition to his or her retirement year. As retirement nears and the ability to recover from market downturns lessens, CLS allocates a portion of the portfolio into a protection strategy. Each year, CLS increases the portion of the portfolio “protected” while lowering the risk budget.
The protection strategy and the glide path are used to supplement the risk budget and active management, cornerstones of CLS’s investment methodology. Pre-Retirement can be a tough transition financially and psychologically. This strategy, specifically addressing the pre-retirement needs of investors, was developed to support financial advisors with clients in this phase of life.