Dec 20, 2018
Have you ever wanted an easy button for your 401k investing?
Target Date Funds are a one-stop investment option for a 401k
participant. Today, we sit down with Andy and Bill Bush to get a
better idea of how we can use target date funds to enhance our own
- :30--- Introduction of today's topic: Target date funds
- :44-- What is a target date fund?
- :50-- A target date fund is a one stop shop for your retirement
- 1:50-- For this fund, the major deciding characteristic is
- 2:37-- The fund that corresponds with your retirement year
contains the right amount of risk for you.
- 3:50-- When you are almost to your retirement, you do not want
as much risk in your portfolio
- 4:33-- There will always be some exposure to stocks because
there is no way to predict how long you will be in retirement
- 4:57-- Target date funds are an ¨easy button¨ for retirement
- 6:22-- The target date is not a guarantee
- 7:00-- Over time they typically increase
- 7:12-- Target date funds are managed over a length of time.
They are not actively managed
- 8:06--Target fund with the same date and different providers
3 Key Points:
- Target date fund is a fund that targets your retirement date.
It is pre-picked with funds that give you the correct amount of
risk for your age group.
- The major characteristic that decides which assets are in each
fund is time.
- Target Date Funds are not a guarantee. The are not actively
managed and are meant to be held until retirement.
- “If I didn't know anything
about investing and didn't want to select my own funds, I could
select the 2035 fund.” –Bill.
- “Bonds and cash are the
most conservative investments whereas stocks are more risky.”
- “Target Date Fund is a
way, an easy button to make one selection when enrolling in a plan.
- “Target Date Fund is not a
guarantee. ” –Bill.