And, you can stay invested
in a target date fund up until, and even through, your retirement years as a way to support stable spending in retirement.
The change over
time in a target date fund's or model's asset allocation mix to shift from a focus on growth to a focus on income.
For those participants who don't make an investment election, their money may be invested
in the target date fund closest to their normal retirement date under the QDIA.
For Vanguard and Fidelity (the only options I suggest for starting your Roth IRA), you'll need to have at least $ 1,000 to get
started in a Target Date Fund and typically $ 2,500 for non-Target Date mutual funds.
According to Morningstar's «2015 Target - Date Landscape» report, there is an estimated $ 700bn of assets under
management in target date funds, up from $ 100bn a decade before.
I have most of my 401 (k) and Roth
IRA in target date funds, but I picked the asset allocation myself on my rollover IRA.
But the Gen X
investors in this target date fund have two critical decades left to build their nest egg, and I think the extra return is worth the modest additional risk.
If you have a choice of investment within those the simplest option is to put the
money in a Target Date Fund, which will handle all the diversifying and rebalancing for you.
Investments in target date funds are subject to the risks of their underlying funds, and asset allocations are subject to change over time in accordance with each fund's prospectus.
Even in your 50s, investing
in a target date fund is probably the best bet.
I'm
in a target date fund, which typically provides professional management at the lowest possible cost.
I'm
in a target date fund, which typically provides professional management at the lowest possible cost.
We have primarily invested in mutual funds although the 401 (k) plans and 529 plans are
in target date funds.
If you're heavily invested
in target date funds, it's time to look at what you own and make sure it fits your risk - profile.
When choosing to invest
in target date funds, it's important to understand your time horizon.
If you are going to invest
in a target date fund, you can ignore the rest of the options.
I have most of my investing
in target date funds but that will change once I have enough money to diversify on my own.
All of these risks should be carefully considered when investing
in Target Date Funds.
Cerulli Associates estimates that by 2019 nearly 90 percent of new 401k contributions will be invested
in Target Date Funds.
Even in your 50s, investing
in a target date fund is probably the best bet.
Yes, they're
in target date funds.