mar350

Lifestyle protection: 1) use absolute performance objectives 2) align invesment process with spending goals 3) tend to underperform in bull market due to lower beta

CF matching: use laddered coupon bonds; best for when goals are expressed using precise cash flow targets

Fixed horizon: use a combination of high quality zero coupon bond that matures near the horizon date and stocks. so in case you need $100,000 for school 10 years later, you buy $100,000 zero coupon bond with 10-year maturity?