Target-date funds are a way for 401(k) participants toput their retirement savingson autopilot — and theycapture the lion's shareof investor contributions to 401(k) plans. About 29% of assets in the average 401(k) plan were held in TDFs as of 2023, according to ...
Helpful questions for choosing an appropriate target-date fund, whether a 401(k) plan sponsor or an individual investor: Philosophy– Do you want actively managed (higher-cost) or passively managed (lower-cost) target-date funds? Glide path– Is the amount of risk (equity percentage) of the ...
Charles Hodge
1. Cost is an overused consideration for picking plan providers, value and quality are underused. 2. Target benefit plans are the Boo Berry Cereal of retirement plans. You know they exist, but you rarely see them...more TDF Analysis Is Par For The Course Ary...
If target-date retirement funds are starting to seem like attractive options, it might be worth considering holding a target date fund in a 401k if one is available to you. Since company 401(k) plans often invest hundreds of millions at a time, mutual fund providers may offer companies an...
As more 401(k) plans chose target date funds as the default option, this strategy is likely to create more complacency about retirement, encouraging us to be lazy, set-it-and-forget investors.
Are TDFs A Ticking Time Bomb For The 401k Fiduciary? There might be a there, there. It could be that TDFs have an Achilles’ Heel that leaves them vulnerable. 0 commentRead Full Article Top Issues (And Their Solutions) 401k Plan Sponsors Have With Recordkeepers ...
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The article focuses on the effectiveness of a target date fund as an investment option within a contribution plan. Drawbacks in the use of money market fund as default investment include the lower returns offered by money market in a rising stock market and the minimal retirement assets available...
This is just one component of what you should be looking at when choosing between fund choices, with other examples being cost (expense ratio?), equity breakdown (international exposure?), and bond breakdown (quality?). Of course, some of us are just stuck with one choice in our 401k/403...