With U.S. plan participants holding $2.75 trillion in 401(k) plans and $4.16 trillion in all employer-based defined-contribution (DC) retirement plans, according to ICI, the assets held in target date funds are forecast to continue to grow rapidly.Torregrosa...
Choosing a target date fund may be one of the most important decisions a retirement plan fiduciary will make, which is why we offer the PGIM Target Date Funds.
Our long-standing track record of managing target-date funds for sponsors and members since 2005, coupled with an approach that uses both active and passive managers, offers multiple price points, exposure to private assets, and is ESG inclusive. Glide path extending through retirement A glide ...
Already have one target-date fund suite in your plan? Here’s why adding another can offer retirement savers greater choice—and greater potential—to save.
A Target Date fund glide path refers to how a fund’s allocation mix of equity, bonds, and cash is managed. Funds managed “to” retirement tend to be more conservative before retirement compared to funds managed “through” retirement. “To” Glide Path: Assumes retirement is the target da...
A target-date fund’s glide path employs a similar rationale — easing the investor to a safe financial destination at retirement. “That’s why target-date-funds are growing at Vanguard and all the major providers,” Young says. “It’s just simply easier for people.” At year-end 2022...
Most target-date funds are still structured as mutual funds, particularly those offered through employer-sponsored retirement plans. When selecting a target-date fund, consider the fund's glide path, underlying holdings, the fund manager's performance history, and fees. Of course, ensuring that the...
An important question to ask when choosing among target-date funds: Is this a “to” fund, in which the glide path freezes your asset allocation the year you plan to retire, or a “through” fund that continues the glide path for 10 years or more past retirement before freezing your asse...
How Do Target Date Funds Work I briefly touched on this above, but want to go into more detail about how they work specifically. The reason people invest in the stock market is for the return. There are very few places where you can earn a decent return on your money safely. ...
flexPATH is the first custom target date funds solution with multiple glidepaths as well as both index and index+ management styles. Discover Your PATH!