See the Retirement Wealth index with a Cost-of-Living Adjustment – 2038
This version of the EDHEC-Princeton Retirement Goal-Based Investing Indices represents the value of a dynamic strategy that aims to offer high probabilities of reaching attractive levels of wealth at retirement while securing, on an annual basis, 80% of the purchasing power in terms of retirement wealth of each dollar invested. To this end, the strategy is invested in two building blocks: the goal-hedging portfolio, which replicates the performance of the corresponding Goal Price Index, and delivers a fixed retirement wealth, and the performance-seeking portfolio, which offers the upside potential needed to reach high wealth levels with high probabilities.
The index value moves every month because of fluctuations in interest rates and in the equity market.
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[tab title="Historical Values"]
Historical values
This figure displays the values of the index and its two building blocks since January 2018. The index value is set to 1 in January 2018. The usual disclaimer applies – see the following link for more details
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[tab title="Rebalancing Weights"]
Weights at last rebalancing time
This figure displays the index composition at the last rebalancing time. The goal-hedging portfolio replicates the performance of the corresponding Goal Price Index. The performance-seeking portfolio is intended to deliver upside potential to achieve aspirational goals. The usual disclaimer applies – see the following link for more details.
Historical weights
This figure displays the index composition since the inception date. The usual disclaimer applies – see the following link for more details
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[tab title="Success Probabilities"]
Success probabilities
This figure displays the probabilities of reaching goals for the index and for a target date fund with a deterministic glide path. The essential goal is to cap the annual loss in affordable retirement wealth to 20% at most. An aspirational goal consists in reaching a higher level of retirement wealth than at the inception date; it is expressed as a multiple (130%, 150% or 200%) of the initially affordable wealth level. Probabilities are estimated by simulating 10,000 scenarios for the future values of the index and the target date fund. The usual disclaimer applies – see the following link for more details
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Data download
Document download
Index construction rules
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