Maxwell Mulholland is the president of M+M Strategic Enterprises LLC, a consulting firm he founded four years ago in Winthrop, Massachusetts. In this position, Maxwell Mulholland has taken on a number of significant consulting projects, including the restructuring of a major Boston-area commercial mechanical contractor, thereby helping his client to achieve an effective glide path to continued business growth.
In business, "glide path" is a term used to describe the road map of asset allocation in relation to a target date fund. A glide path can be structured non-conservatively, with more equities than fixed assets, or conservatively, though all glide paths become more conservative as the target date draws nearer. Similarly, glide paths can be designed with a steep trajectory, while others might swap out equities for fixed assets at a more gradual rate, depending on the specific goals of individual investors.
Target date funds and, by extension, glide path formulas are particularly relevant in regards to retirement planning. Younger investors are viewed as having more time before retirement and should, therefore, maintain higher risk portfolios comprised mostly of equities, while older investors are advised to prioritize fixed-income investments. Specific types of glide paths include declining paths, static paths, and rising glide paths.
