Jason Shapiro notes that some DC plan participants may stay in their plan after retirement and rely on TDFs’ asset allocation for retirement income for possibly 30 years or even more.
They are viewed as the third phase in the development of exchange-traded funds.
Presidential election cycles have a history of unpredictability, and for that reason alone investors should be cautious about tailoring their portfolios based on the politics of the day.
The research paper not only illustrates potential return characteristics and diversification benefits, but also offers allocation strategies to guide investment decision making.
Many workers view equity compensation plans as a way to build significant wealth; experts say it is important to have a mix of taxed and tax-deferred savings.
The investment firm will be shifting all of its focus to its CIT target-date series.
While trading during the month favored fixed-income funds, with the positive stock market movements, average asset allocation in equities increased from 67.1% in September to 67.3% in October.
The Securities and Exchange Commission’s (SEC)’s Office of Compliance Inspections and Examinations found some concerns related to money market funds and target-date funds.
Comparing the “quality” of target-date funds is not a straightforward operation. One must decide how to prioritize performance, risk and many other factors when making a prudent investment decision.
Experts see more value for participants to move their money from one 401(k) to another 401(k) than from a 401(k) to an individual retirement account.
Investors must rethink “safe havens” in their portfolio now that bonds simply can’t offer the same combination of portfolio protection and positive income.
Experts say this has never been more important, with TDFs projected to hold more than half of all retirement plan assets by 2025.
The largest funds tend to have the highest ratings from objective third parties, while the smallest funds generally fail to receive positive marks.
The third quarter marked the seventh consecutive quarter that 401(k) participants have moved their money from equities into fixed income, according to Alight.
The 2019 PLANSPONSOR Target-Date Fund (TDF) Buyer’s Guide breaks down the custom TDF market by provider, series name, glide path landing point, number of funds per series, and according to the underlying fund vehicle.