System and Method for Optimizing a Target Date Fund

An article of manufacture comprising a computer readable medium comprising computer readable program code disposed therein to generate a glide path for a target date fund comprising a growth asset and a reserve asset, wherein the glide path comprises a distribution of the growth asset and the reserve asset over a time period ending on an end date, the computer readable program code comprising a series of computer readable program steps to effect:

• identifying an acceptable risk level for the target date fund;
• determining, using the identified acceptable risk level, an inflection date;
• calculating a value G(i) that is equal to a percentage of the target date fund comprising the growth asset at the inflection date;
• calculating a value R(i) that is equal to a percentage of the target date fund comprising the reserve asset at the inflection date;
• and
• determining, using G(i) and R(i), the glide path for the target date fund, wherein at the end date the reserve asset comprises one hundred percent of the target date fund.

A computer program product encoded in a non-transitory computer readable medium and useable with a programmable computer processor to generate a glide path for a target date fund comprising a growth asset and a reserve asset, wherein the glide path comprises a distribution of the growth asset and the reserve asset over a time period that ends on the end date, the computer program product comprising:

• computer readable program code which causes the programmable processor to identify an acceptable risk level for the target date fund;
• computer readable program code which causes the programmable processor to determine, using the identified acceptable risk level, an inflection date;
• computer readable program code which causes the programmable processor to calculate a value G(i) that is equal to a percentage of the target date fund comprising the growth asset at the inflection date;
• computer readable program code which causes the programmable processor to calculate a value R(i) that is equal to a percentage of the target date fund comprising the reserve asset at the inflection date;
• and
• computer readable program code which causes the programmable processor to determine, using G(i) and R(i), the glide path for the target date fund, wherein at the end date the reserve asset comprises one hundred percent of the target date fund.