FYI: Target-date funds (TDFs) have become incredibly popular in defined contribution plans, such as 401(k)s, due to their combination of low cost and risk-adjusting asset allocations.
While TDFs work out well as qualified default investments in these plans, they still lack a personal touch when it comes to an individual investor’s needs and objectives. This article explores how a TDF in combination with an individually managed account might produce superior risk-adjusted returns.
Regards,
Ted
http://mutualfunds.com/target-date-funds/role-target-date-funds-hybrid-defined-contribution-plans/
