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Target-Date Funds: Twice As Popular Vs. 15 Years Ago
FYI: Many workers want to put their retirement accounts on autopilot. That's the lesson from new data that show that recently hired plan members flock to balanced funds — which include target-date funds Regards, Ted http://license.icopyright.net/user/viewFreeUse.act?fuid=MTg3NzE2ODQ=
The comparison is with 1998. That was an extraordinarily "euphoric" period for retail investors for many reasons. So, the rise in popularity of balanced funds in subsequent years doesn't surprise me.
If I'm reading this article correctly, it's really about balanced funds "which include target-date funds" (quoting from article). I find this presentation a bit suspicious.
That aside, it's unfortunate so called "target date" funds get lumped together at all by financial commentators like this one. They vary greatly in their approach to investing. If you want a good one, look to the fund family first. That's where it all starts with these things.
Comments
For some reason, Ted's link to his original article disappeared or became inoperative after I wrote a response. Not good. Here's the original article to which I was responding:
http://www.nasdaq.com/article/target-date-funds-twice-as-popular-vs-15-years-ago-cm425440
The comparison is with 1998. That was an extraordinarily "euphoric" period for retail investors for many reasons. So, the rise in popularity of balanced funds in subsequent years doesn't surprise me.
If I'm reading this article correctly, it's really about balanced funds "which include target-date funds" (quoting from article). I find this presentation a bit suspicious.
That aside, it's unfortunate so called "target date" funds get lumped together at all by financial commentators like this one. They vary greatly in their approach to investing. If you want a good one, look to the fund family first. That's where it all starts with these things.