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New Target-Date Funds Are Geared For Withdrawal Time
I’m always interested in what T Rowe Price is doing. Interesting that they had a Retirement Income Fund for many years, but decided about 5 years ago to rename it Retirement Balanced.
Now a new Retirement Income fund? Modeling its performance expectations on their current 2020 Target date fund would make it somewhat more aggressive than their previous Retirement income fund (TRRIX). In hindsight, rebranding the old fund must have been Price’s way of “clearing the deck” for this new one. Brings to mind, “What’s in a name ...”. When a company reaches the point where there are no longer enough names to go around due to their offering so many funds, what does that say?
Still reading this story. Not entirely clear whether there’s a glide slope with this one - but probably not. (Actually, their website says there is a glide slope). I don’t understand where the firm is going with the launch of so many new funds in recent years. This one is a real puzzle (unless their goal is just to attract more and more assets). Dodge & Cox seems to do just fine with only 5 or 6 funds.
One thing that would steer me clear of this one - In order for it to work as intended, an investor would seem to have to entrust his/her entire retirement nest egg to this fund. Diversifying into several other funds would appear to thwart the fund’s intended goal.
Comments
I’m always interested in what T Rowe Price is doing. Interesting that they had a Retirement Income Fund for many years, but decided about 5 years ago to rename it Retirement Balanced.
Now a new Retirement Income fund? Modeling its performance expectations on their current 2020 Target date fund would make it somewhat more aggressive than their previous Retirement income fund (TRRIX). In hindsight, rebranding the old fund must have been Price’s way of “clearing the deck” for this new one. Brings to mind, “What’s in a name ...”. When a company reaches the point where there are no longer enough names to go around due to their offering so many funds, what does that say?
Still reading this story. Not entirely clear whether there’s a glide slope with this one - but probably not.
(Actually, their website says there is a glide slope). I don’t understand where the firm is going with the launch of so many new funds in recent years. This one is a real puzzle (unless their goal is just to attract more and more assets). Dodge & Cox seems to do just fine with only 5 or 6 funds.
One thing that would steer me clear of this one - In order for it to work as intended, an investor would seem to have to entrust his/her entire retirement nest egg to this fund. Diversifying into several other funds would appear to thwart the fund’s intended goal.
https://mutualfundobserver.com/discuss/discussion/33604/fidelity-launches-funds-that-can-make-rmds-for-aging-baby-boomers