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Target Date future plans

shipwreckedandalone
in Fund Discussions
What is the average disposition for TD funds that have passed? For example TD 2010 funds or older. Is the plan to continue listing forever? Any past examples? Is liquidation a consideration? Anybody up to speed on this?

It seems like i remember reading in one fund family that the asset allocation continues to shift pass the TD until a certain limit allocation is reached and at that point freezes AA forever.

If fund families do nothing, then the number of these type funds in one fund family (passed TD) will grow resulting in many funds with different dates but same asset allocations (for new shareholders) thus incentive to discontinue operations or merge similar funds???

Comments

  • yogibearbullyogibearbull
    Through-TDFs have approx 50-50 allocation at the designated retirement date and their equity % keeps declining for about 7 yrs. At that point, they may merge into the income fund of the TDF series.
  • shipwreckedandalone
    Which fund family are you quoting? Do you mean merge into the Target Date Retirement Income fund? A few of these past date funds have good performance.
  • yogibearbullyogibearbull
    I didn't quote anything/anybody. But I think that is the general policy of through-TDFs (Fido, Vanguard, some Price, etc), but not for to-TDFs*.

    Price is trying different ideas - it has 2 TDF series (older riskier, newer more conservative). In older series, it has made the income funds distinct, even sort of unlinked it from the TDF. I suppose, it may keep old names like TDF 2010, etc for a long time.

    *To-TDFs become most conservative at the target retirement date and don't change any further.
  • shipwreckedandalone
    edited January 2022
    https://morningstar.com/articles/632460/what-happens-to-your-target-date-fund-when-you-retire

    Schwab uses a 25 year glide path after TD is reached on the fund I was researching. "Through" approach. Each family different I guess.
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