When implementing a Glide Path within the Gear Icon > Settings Methodology tab of a client plan, you will be asked to set a grading schedule. The grading schedule is an important variable that determines how quickly the client's current allocation will transition to match the allocation of your chosen glide path:
You can set anywhere from a 1-year grading, to a 40-year grading. Grading schedules can be best visualized within the Investment > Allocation Path tab of the client plan.
For example, a grading schedule of 1 year will see an immediate snap from the way a client is currently invested in year one, to the glide path allocation in year two:
On the other hand, a grading schedule of 40 years will see a slow, gradual transition from the client's current allocation in year one, to the glide path allocation in year 40:
In situations where you want to model a more immediate shift in a client's allocation, a shorter grading schedule is appropriate. If you want to model this shift over a longer period of time, a longer grading schedule can be used.
The grading schedule will still be used when proposing a glide path in the Retirement > Analysis > Action Items. The "Asset Allocation" action item will determine the starting point of the glide for that proposal:
For a quick video tutorial on setting a glide path grading schedule, click here.
