Lifepath investing is a plan to reduce risk as wee near retirement, similar to a target date fund but with better risk management. COVID-19 reinforces the importance of risk control.

1. Lifepath Investing
and COVID-19
Retirement
Working
Save, Invest, Protect

2.  What is LifePath Investing?
A framework used in 401(k) plans. More than $2.5 trillion is invested in target
date funds. Age matters. Investors in the Risk Zone that spans the 5 years
before and after retirement cannot afford much investment risk.
 Why does COVID-19 matter?
This pandemic is a current and serious threat to our health and wealth,
affecting baby boomers the most because (a) they’re in the Risk Zone and
(b) they are most vulnerable to the virus. A double whammy.

3. A Warning to Baby Boomers:
Investment Risks are Too High & Rewards Too Low

4. Save and Protect is a LIfetime Investment
Master Plan: Reduce Risk As Savings Grow
$Savings
Risk Zone
Risk
Working
Life
Retirement
Glide Path

5. What is Your View?
Markets will recover to
what they were.
Government will
backstop all issues.
Pandemic ends in 4-6
weeks.
Health and Wealth
Markets will suffer
serious long-term losses.
Intervention leads to
serious inflation
COVID-19 re-flares in
the Fall

6. Important Questions About Health & Wealth
 Am I still OK? How do I see myself in 10 years?
 What should I do now? Stay the course? Sell into strength?
 When will markets return to normal? V, U, W, L
 How will fiscal & monetary policy effect the economy?
 What are long-term medical, economic, & political consequences?
 What should I be doing differently going forward?
See Six Questions… by Steve Sanduski in Financial Advisor Magazine

7. A Framework: Target Date Fund
60/40

8. RISK CAPACITY
OVERRULES
REQUIRED RETURN No Risk Beyond This Line
60/40 Stocks/Bonds is Way Too Risky for Baby Boomers
What happened to “100 – Age”?
60/40
Excessive Risk Definition: Loss of 10% or more in the Risk Zone

9. A Shocking Month for Those Near Retirement
-2.0SMART TDF Index

10. Remember
2008 60% Equities
75% Risky Assets
Less than
20% Risky

11. The problems with target date funds
One Size Does Not Fit All
They’re Too Risky for Baby Boomers,
Except SMART Funds.

12. 0
10
20
30
40
50
60
70
80
90
100
49 47 45 43 41 39 37 35 33 31 29 27 25 23 21 19 17 15 13 11 9 7 5 3 1 -1 -3 -5 -7 -9 -11-13-15-17-19-21-23-25
Target Date Fund Template
%Equity
Years to Retirement
Retirement
Date
A = 100%
C= 45%
B = 55%
B’ = 10%
Typical TDF
Recommended
Path
Building Your Own Target Date Portfolio
• Annuities
• Guaranteed

13. Risk Management is Not Market Timing

14. Dangers
Ahead
At least one of these threats will
probably happen in this decade
Risk
Management
Before you say “Final Answer” consider these other threats
COVID is the match that lit the lingering threats tinder

15. Per Capita World Debt is $200,000
North Korea and Iran
China, Europe, etc.
COVID-19 Stock & Bond Market Bubbles
Social Security & Medicare Going Bankrupt
Hyperinflation

16. • 78 million baby boomers
• $65 trillion transferring to next generation
• Negative interest rates
• $10 trillion stimulus in $20 trillion economy
• Energy futures at negative price
• Fed intervention in bond & stock markets

17. Get help
Browse to “Age Sage Robo” for self help & to assess the wisdom of the consulting advice
you’ve received. Get your free eBooks on “Bad Gambles” & “4 Pillars of Smart Investing.”
Browse to ”GlidePath Wealth Management” for consulting help. Get your free eBooks on
“Selecting an Advisor” , “Retiring a Millionaire” and “Lessons from COVID-19.”
Watch our “Baby Boomers Investing Shows” every other Tuesday
Browse to Facebook or Youtube
Search for “Age Sage Robo”
Contact Ron Surz Ron@PPCA-Inc.com

18. Live the Good Life
Make the Right
Decisions
The Baby Boomer Investing Show