Archive for the Category Target-Date Funds

 
 

Target-Date Funds Reset Their Sights

Fund companies are tinkering with these one-stop retirement plans after their bear-market beating.

From Kiplinger’s Personal Finance:

From U.S. senators to government regulators to shell-shocked investors, everyone, it seems, is drawing a bead on target-date funds for producing such rotten results during the 2007-09 bear market. These funds were supposed to be simple solutions for retirement saving: You picked a fund with a date close to your anticipated retirement. As the date approached, the fund would adjust the bond portion of its portfolio to become more conservative and protect returns.

Read more here.

 

ETFs Target Retirement

Target-date funds are now available in low-cost exchange-traded flavors.

From Kiplinger’s Personal Finance:

Like peanut butter and jelly, target-date exchange-traded funds should be an irresistible combination. These funds aim to marry the low costs of investing in ETFs with the set-it-and-forget-it ease of funds that shift to a more conservative mix of stocks and bonds as they approach their target dates.

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