doi:10.21314/JOR.2011.225Laurence BoothBin ChangJournal of RiskBooth, L., and B. Chang. 2011. "Target-Date Funds: Good News and Bad News." Journal of Risk 13 (3): 55-82.
“Target date funds are not meant to be the perfect portfolio solution, but they are meant to be a better starting point,” Brancato said. An investment which helps people “maintain an appropriate asset allocation is a good thing,” said Stuart Ritter, a vice president and senior financial...
Target-date funds: Good news and bad news Target-date funds are funds targeting specific retirement years. They are now included in many defined contribution pension plans and, in some cases, represent the default choice. We analyze the investment characteristics of these funds ... L Booth,B ...
But not all target-date funds are created equal. Three features, it turns out, can make the difference between a good target-date fund and a bad one. The so-called glide path—the proportion of stocks and bonds in the portfolio and how it changes over time as the target date approaches...
Target-date funds are a core component of many investors' retirement strategies. And for good reason: These funds provide a one-stop shop for retirement investors. Every target-date fund adjusts its asset allocation from more aggressive and growth-oriented holdings in the early savings years to ...
As mentioned above, target-date funds are a common preset choice for a 401(k). If you have a 401(k) and never changed what's in it, there’s a good chance you already have a target-date fund. You also can open a brokerage account with a fund manager or online broker to shop ...
Whether it makes sense to stick with target-date funds or not ultimately depends on someone's personal preference. Experts acknowledge that they can be a good fit for some investors such as when someone is new to investing and only has a smaller amount of money to start their investment port...
Target date funds, which are also given the name “lifecycle funds”, are retirement plans that combine stocks, bonds and other investments and become more conservative as you approach retirement age or any other goal. These mutual funds take the guesswork out for you by allowing you to choose...
No news is good news; Target-date funds stay the course but interest in guarantees grows.(Feature Story)(Cover story)Davis, Andrea
Target-date retirement funds can be a good investment for those wanting to simplify and automate their retirement investing. They offer the convenience and benefits of diversification. Plus, they provide smart, automatic rebalancing of their asset allocations to match investors' changingrisk tolerance. ...