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.
The research paper not only illustrates potential return characteristics and diversification benefits, but also offers allocation strategies to guide investment decision making.
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 say this has never been more important, with TDFs projected to hold more than half of all retirement plan assets by 2025.
Willis Towers Watson’s Thinking Ahead Institute says defined contribution plan designs and communications will leverage technology to deliver a far more customized experience for participants.
Mesirow Financial presents third mutual fund and managed account program, and MSCI builds indexes to track long-term megatrends.
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.
Participants who mix target-date funds (TDFs) with other investments appear to be more sophisticated, but "it can diminish (or eliminate) the target-date fund’s potential benefit,” says David Blanchett, head of Retirement Research at Morningstar Investment Management LLC.
The lawsuit accuses the retirement plan committee of CHS/Community Health Systems, Inc. Retirement Savings Plan and Principal defendants of imprudent management of the plan and its investments.
A litigation firm has listed what it is investigating for potential lawsuits over target-date funds (TDFs) in retirement plans.
Plan advisers can help 403(b) plan sponsors looking for downside protection, active strategies and target-date funds (TDFs) that can be used as a decumulation vehicle in retirement.
Despite a market “teeming with better-performing alternatives,” the plaintiffs say, Walgreen selected the Northern Trust Funds, which already had a history of poor performance.
The program from GoalPath offers target-date funds that consider not just a participant’s age but other data, and it emphasizes retirement income over account balances.
Plan sponsors that fully automate their plans are more likely than others to believe their workers are on the path towards a financially secure retirement, J.P. Morgan found.
With its fee reduction, 21 of the 22 Fidelity Freedom Index Funds will have total net expenses lower than comparable Vanguard index target-date funds, Fidelity says.
This is driving providers to offer inexpensive options, such as series that rely on CITs and passive funds, Morningstar says.
While passive target-date funds (TDFs) dominate the defined contribution (DC) retirement plan market, Cerulli suggests that touting advantages of active TDFs could make plan sponsors reconsider.
A Vanguard analysis still finds both “pure TDF investors,” or those who hold only a single TDF, and “mixed investors”—investing in a TDF in combination with other investments (or, rarely, hold multiple TDFs).