FYI: Great news for savers: Average retirement account balances have hit record highs and have almost doubled in the past 10 years.
A good deal of the money in 401(k) accounts is ending up in target-date funds. In fact, more than half of 401(k) accounts hold 100% of their assets in target-date funds, according to third-quarter data from Fidelity Investments. Whether that’s a wise strategy, however, is up for debate.
This is the first year more than half (50.4%) of 401(k) savers have all of their assets in a target-date fund, the Boston-based financial services firm found in its third quarter analysis of its investors’ retirement savings. More than 30% of overall 401(k) assets are in target-date funds, up from 9.8% in the third quarter of 2008. Even more savers in 403(b) plans — 62% — have all of their assets in a target-date fund, the report said.
Regards,
Ted
https://www.marketwatch.com/story/should-you-have-your-entire-401k-in-a-target-date-fund-2018-11-05/print
