I have always had a problem with target date funds (TDFs). It had to do with glide paths and the fact that there was no uniformity as it pertained to what should be in a 2025 fund or any fund for that matter.<\/p>\n
The Morningstar Center for Retirement & Policy Studies\u00a0found that target-date fund plan sponsors may expose individual investors to increased risk by not tailoring plan glide paths to their behavior.<\/p>\n
The center reports that 58% of defined-contribution plan assets are invested in off-the-shelf TDFs, many of which are designed for participants to stay in the plan\u00a0through<\/em>\u00a0their retirement, even when they are likely to roll their money out of the plan\u00a0at<\/em>\u00a0r<\/em>etirement.<\/p>\n While TDFs are a great idea, there are just too many issues that still remain.<\/p>\n <\/span><\/p>","protected":false},"excerpt":{"rendered":" I have always had a problem with target date funds (TDFs). It had to do with glide paths and the fact that there was no uniformity as it pertained to what should be in a 2025 fund or any fund … Continue reading