Dedication Strategy
Categories: Managed Funds
A way to arrange your investments by matching the amount you expect to generate with the amounts you expect to have to pay in the future. Basically, you set up projected returns to match some set of expected expenses.
Retirement planning often involves a dedication strategy. You have certain things you want to do in retirement (like live indoors and eat food...maybe do hobbies or travel if there's still money left over). You figure out what this will cost and then you organize your investment strategy so that you can earn enough to pay for it.
Beyond the personal level, it comes up a lot for pension plans. The reasoning is similar...it's just done on a bulk level.