Target-date fundsThe use of target-date funds (TDFs) in 401(k) plans has increased rapidly in recent years. The percentage of all 401(k) plan participants using TDFs increased from 25 percent in 2007 to 31 percent in 2008. One of the reasons for this growth is that TDFs have been ...
Over time, the allocation of the TDF to stocks decreases as you get closer to the target date. Target-date funds may work well for certain individuals as long as they understand how these funds work. Even so, you need to examine the specifics of the fund's investments, the fees charged...
Target-date funds are the undeniable leaders in the retirement saving industry. As the default investment vehicle for most employees with defined contribution plans, TDFs have surged in popularity over the years. “Target-date funds have been very effective as a way to get millions of participants...
What are target-date funds and should you invest in one? Target-date funds are ready-made investment portfolios that experts manage over time so you don't have to. Are target-date funds right for you? Read more Contact us today Choose Manulife as your partner for retirement. Contact your...
i.e. It will gradually decrease exposure to risk over time, and increase income-producing assets like bonds. This is called the “glide path”. For most people, target date funds can be a great “set and forget” option for retirement saving. But, before committing to a target date fund...
Target-date funds are a "set it and forget it" retirement savings option that removes two headaches for investors: deciding on a mix of assets and rebalancing those investments over time. What is a target-date fund? Target-date funds, also known as life-cycle funds or target-retirement fund...
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 pre-mixed portfolios that automatically invest more conservatively over time. Here's how they work: Investors select funds near their estimated date for retirement, say 2050. That 2050 fund typically starts out with 90 percent invested in stocks and gradually shifts to a por...
Target-date funds are designed to change their assets over time, adjusting to more conservative, less risky investments as retirement or another event approaches. These funds offer a diversified, hands-off approach to retirement investing, making them attractive for those who prefer a more "set it...
Target date funds are usually mutual funds holding a combination of stocks, bonds, and other investments. Over time, the managers of these funds shift the allocation of these various asset types toward a more conservative approach; for instance, from a more stock-heavy portfolio when retirement i...