This is obviously only a basic guide to evaluating target date funds as more complex issues like the type of equity assets, credit quality and duration of fixed income holdings, inflation hedging, use of alternative asset classes, or active versus passive fund management can all come into pl...
Target-date funds offer investors the convenience of automatically allocating assets in the fund from day one. But these funds can also improve returns for investors. Some studies have shown that up to 90 percent of an investor’s return depends on how money is divided between various asset ...
Target-date funds may be a quick-meal approach to portfolio management, but recipes and ingredients can vary widely across your menu of offerings. One feature of all target-date funds is their “glide path,” or how the funds descend from a high ratio of riskier equity funds toward safer ...
Exchange-traded funds let an investor buy lots of stocks and bonds at once. How to Invest in Bonds Bonds are often considered a "safe" investment, but are they right for you? Christy Bieberhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the ...
The article focuses on five areas that investors need to consider prior to purchasing a target-date fund. It notes that target-date funds include a retirement year in the name of the investors and change to a more conservative asset mix when that year is coming near. It states that investor...
"To" versus "through" glide paths:A target-date fund's glide path is how it manages the level of risk, or equity (more risky) versus fixed-income (less risky) exposure, throughout an investor's lifetime. Some funds reach their lowest equity allocation at the target retirement date and ...
“These funds are designed to be one-size fits all investment allocation strategy,” he said. “Make sure you understand how your target date fund is allocated since most do not have a large amount of international equities or real estate investments.” ...
Some people may lean toward target-date funds based on the assumption that these funds are a cost-efficient way to invest. But that can be misleading. “It’s very difficult to really understand what the costs are within a target-date fund,” says Guy Baker, founder of Wealth Teams Allian...
Target-date funds and fees Many people buy a target-date fund through an employer-sponsored retirement plan, such as a 401(k) or 403(b) plan. The choices may be limited when it comes to the funds available in these plans. It’s important to look closely at the fees associated with ta...
Target-date funds are structured to maximize the investor's returns by a specific date. Generally, the funds are designed to build gains in the early years by focusing on riskier growth stocks, then they aim to retain those gains by weighting towards safer, more conservative choices as the t...