How to Pick a Target-Date Fund.The article presents a discussion on choosing target-date funds.TERGESENANNEEBSCO_bspWall Street Journal Eastern Edition
Figuring out which investments to choose is probably the hardest part of investing. Here’s the good news: It can actually be very simple. Target-date funds:The easiest way to start investing is to choose a target-date fund, which is amutual fundthat invests in other mutual funds for you...
Also, you may want to consider transaction fees. You could choose to eliminate funds with transaction fees, sometimes called loads. A transaction fee reduces your initial investment in the fund, and the impact of that initial cost can be long-lasting. However, in some cases, funds without tra...
A target-date fund is a mutual fund (or exchange-traded fund) that gradually rebalances and reallocates assets as you get closer to retirement, typically shifting the majority of assets from riskier investments such as stocks to more conservative investments such as bonds and cash. The fund is...
There are over 10 million people with a 401(k) or 403(b) who potentially invest in both a target-date fund and other assets, according to anew report from Morningstar, an investment research firm. But doing so could possibly hurt your bottom line. ...
However, if your child graduates in two years and you can’t bear the thought of losing a dime of their college savings, you’d have a lower risk tolerance and risk capacity. You can use your risk tolerance and capacity to choose mutual funds that align with the practical and emotional ...
These plans have other benefits, too, depending on which type of 401(k) plan you choose: Atraditional 401(k)allows you to deduct your contributions from your paycheck so that you don’t pay taxes on it today, only when you withdraw the money later. ...
A great way to see this adjustment process in action is by looking at the glide paths of target-date funds, such as Vanguard’s. The glide path shows how the fund reduces its risk as investors approach retirement. If you aren’t sure how to set your own asset allocation, you can use...
sales, and other activities related to the distribution of fund shares. These fees come off the reported share price at a predetermined point in time. As a result, investors may not be aware of the fee at all. The 12b-1 fees can be, by law, as much as 1%...
sales, and other activities related to the distribution of fund shares. These fees come off the reported share price at a predetermined point in time. As a result, investors may not be aware of the fee at all. The 12b-1 fees can be, by law, as much as 1%...