“Be sure you positively identify your target before you pull the trigger.” ~Tom Flynn
Target Date Funds are the default options for many investors in their 401(k)s. Not because they are great options, but because they cover the butts of 401(k) companies and employers. But they have their troubles.
TDFs are Dumb. They result in lower long term returns at higher fees.
TDFs are Dangerous. They give no options to those in retirement, forcing them to make The Big Mistake: Selling their equities when they’re down.
While this is not investment advice, I contend that NO ONE should own Target Date Funds.
This article is educational only and is not intended to be investment, legal, or tax advice or recommendations, whether direct or incidental. Again, this is not investment advice. Consult your financial, tax, and legal professionals for specific advice related to your specific situation. Never take investment advice from someone who doesn’t know you and your specific situation. All opinions expressed in this article are the opinions of the people expressing them. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. RetireMentorship is not affiliated with any Registered Investment Advisor, Broker-Dealer, or other Financial Services Company.