This undated file photo provided by NerdWallet shows Liz Weston, a columnist for personal finance website

How to create your retirement glide path

You could also be acquainted with the time period “glide path” because it relates to investing. It refers to the best way asset allocation sometimes will get extra conservative as you method your objective. But it’s also possible to arrange a glide path to take you into retirement, notably if you happen to’re preparing to retire however don’t need to make all of the drastic modifications related to leaving the workforce directly. Gliding into retirement could contain making gradual modifications to your workload, social networks and outdoors pursuits.

In investing phrases, a “glide path ” describes how a mixture of investments modifications over time. Typically, the combination will get extra conservative — with fewer shares and extra bonds, for instance — because the investor approaches a objective resembling retirement.