A Bracing Year for Target-Date Funds

via Wall Street Journal

With all the turmoil in stock markets this year, how well are target-date mutual funds performing?

Not very well, particularly for investors who are retiring this year. And that has fueled the debate over how these funds should adjust the balance between stocks and other investments in their portfolios as they approach their target date—a balance many fund providers have tinkered with in the past couple of years.

The upshot for investors: They should understand that funds with the same target date don’t all have the same exposure to stocks, so some funds might suit their risk tolerance more than others.

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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