It’s time to think about retirement in a new way, with a focus on income. The Dimensional Target Date Retirement Income Funds are designed to offer a low-cost, convenient solution to retirement planning.
How much should you be saving for retirement? Massi De Santis, PhD, explains that the answer should be customized for each individual, based on how their income grows prior to retirement.
How much retirement income is enough? In this client-ready video, Marlena Lee, PhD, explains that the answer should be customized for each individual, based on their lifestyle and their income prior to retirement.
Peng Chen discusses his recent paper on optimal withdrawal strategies. The paper, which received the 2012 Academic Thought Leadership Award from the Retirement Management Journal, evaluates common withdrawal, or spending, strategies based on a new measurement–the withdrawal efficiency rate.
Dimensional thought leaders discuss principles that may help investors during periods of increased market volatility.
Can investors predict when to buy and sell securities? Jim Davis, PhD runs more than 780 tests on data from 15 stock markets to test this theory.
Curious about how markets work? This video explains how security prices are set and how they change based on the collective knowledge of buyers and sellers. Armed with this information, investors will better understand how and why markets work.
Does it make sense to dollar cost average? It depends. Standard financial analysis says dollar cost averaging is suboptimal. If you focus on only your investment outcome, investing a lump sum immediately lets you construct the best portfolio you can today; slowing the process with dollar cost averaging just keeps you in something other than your best portfolio until you are done. Behavioral finance provides a different perspective. Because of the difference between the…
Investors may doubt the usefulness of diversification after the recent market decline. In this video, Kenneth French explains that diversification cannot reduce the volatility of the overall market, but it is still important because it reduces the risk associated with individual firms or asset classes. He also discusses the perception that correlations between assets rise when market volatility is high.