In theory, an individually directed IRA or 401(k) account is no different from a traditional employer-sponsored pension plan. Both have the same goal: to make sure the beneficiaries have a stream of payments sufficient to fund a comfortable retirement. The tools for doing so are similar, too: actuarial estimates, a disciplined schedule of employee (instead of employer) contributions, and a tailored asset allocation strategy to address projected liabilities.
When it comes to designing and adhering to a consistent investment strategy, however, institutional and individual investors part ways.
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