Investing term
What is Glide path?
A planned shift in allocation over time — typically moving from stocks toward bonds as retirement approaches.
A glide path is a planned, gradual shift in your asset mix over time — typically moving from mostly stocks toward more bonds as a goal like retirement approaches. It automatically dials down risk as your time horizon shortens, so a market crash near your goal does less damage. Target-date funds follow a built-in glide path on your behalf.
For example
A glide path might hold 90% stocks at age 30, drift to 60% by 55, and reach 40% at retirement — de-risking as the finish line nears.
Glide path is taught hands-on in Stage 3 — Know Yourself: Risk Tolerance & Time Horizons.
See the lesson →