Glide paths can be applied to a financial plan by opening the client, navigating to the Gear Icon > Settings > Methodology page,and selecting Allocation Method > Enable Glide Path:
With a glide path enabled, the client's investment allocation will slowly migrate to the glide path allocation over the specified number of years. A second dropdown menu will then appear under the allocation method to determine which glide path will be used. Options will include the Default glide path, in addition to your own custom glide paths.
Once a glide path is selected, determine how quickly the allocation shifts from the current allocation to the glide path allocation by changing the grading schedule. This can be a duration of anywhere from 1 to 40 years;
If '1-year grading' is selected, the client's allocation will automatically shift to the glide path allocation in year 2 of the projection. For any other grading schedule, the client's allocation will shift proportionally over the duration of the grading schedule, from the current allocation to the glide path allocation indicated.
Glide Path example
If the grading schedule is 10 years, in year 2 of the projection, the allocation will be 9/10 of their selected allocation and 1/10 of the glide path allocation; after 10 years the allocation will be 100% glide path allocation.
Once selected, the glide path can also be adjusted within any proposed plan through the Retirement > Analysis > Action Items > Strategies area:
The transition of equity, fixed income and cash within a client's portfolio can be visualized within the Investment > Allocation Path module:
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