{"id":4224,"date":"2019-09-10T07:58:33","date_gmt":"2019-09-10T11:58:33","guid":{"rendered":"http:\/\/therosenbaumlawfirm.com\/blog\/?p=4224"},"modified":"2019-09-10T07:58:33","modified_gmt":"2019-09-10T11:58:33","slug":"the-problem-with-target-date-funds","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=4224","title":{"rendered":"The problem with target date funds"},"content":{"rendered":"<p>I wasn\u2019t a fan of target-date funds when the markets crashed in 2008 because there was no consistency of investment objectives and equity-fixed income mix between target-date funds for a specific year among different fund companies.<\/p>\n<p>People who thought a 2010 or 2015 fund would have more fixed-income investments were in for a big of a shock based on the fund they were in. Funds also had different glide paths. It\u2019s like buying diet sodas where some had a lot more calories than zero and there wasn\u2019t any regulation that had labeling requirements where a 2025 target-date fund had a consistent equity-fixed income split among the fund companies.<\/p>\n<p>Also, I have concerns over investment education because I\u2019m sure there are countless participants out there that invest in target-date funds, as well as other funds in their investment selections, which defeats the purpose of the target date funds. Also, I\u2019ve seen a major uptick in litigation against larger plans over proprietary target-date funds. With asset allocation funds and managed accounts available, I don\u2019t know if target-date funds offer any type of value to both plan fiduciaries and plan participants.<\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>I wasn\u2019t a fan of target-date funds when the markets crashed in 2008 because there was no consistency of investment objectives and equity-fixed income mix between target-date funds for a specific year among different fund companies. People who thought a &hellip; <a href=\"https:\/\/therosenbaumlawfirm.com\/blog\/?p=4224\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4224"}],"collection":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4224"}],"version-history":[{"count":1,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4224\/revisions"}],"predecessor-version":[{"id":4225,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4224\/revisions\/4225"}],"wp:attachment":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}