Not exact matches
According to Greenshields, Russell Investments is a big proponent of risk - based and
target - date funds in defined contribution (DC)
retirement plans because they insulate participants
against behavioral biases.
However, Cerulli says there are some important arguments
against the use of TDFs that all ERISA fiduciaries should consider: «The chief argument
against target - date funds is their homogeneity as they do not account for an investor's risk tolerance, specific
retirement plans, or other assets.»
However, the portfolio composition at the
target date confronts a familiar dilemma: How should the conflicting goals of low - risk investment in
retirement be balanced
against the need to incorporate into the portfolio some stock investments that, although higher risk, will serve to outpace inflation?