Target Date Funds aren’t right for every 401(k)
A recent article that appeared on CNBC.com titled “Don’t let your 401(k) retire before you do” highlighted some of the reasons that TDFs may not be a good fit for all plan participants, including:
- There is not uniformity among TDFs as to their asset mix, which can change unexpectedly
- Individual investors may have unique circumstances that may not fit the “one size fits all” approach
- Know what the fund managers definition of “target date” actually is…it may be your retirement date, or it may be some point beyond that
A link to the full article can be found at CNBC.com.
