When Target-Fund Fees Are Off-Target

via Wall Street Journal

Target-date funds keep growing in popularity for retirement accounts. But many investors may be paying higher fees on these funds than they need to.

The funds are pitched as automated retirement-planning assets. They are mutual funds made up of other funds—stock, bond and money-market funds—and adjust the balance, getting more conservative as they approach the target date, near the person’s expected retirement.

But fees often take a sizable bite out of a fund’s returns—particularly a fund designed to be left alone for decades. What’s more, fees are perhaps the only determinant of a fund’s performance that an investor can actually be sure of ahead of time, which makes them particularly important to monitor.

Read the full article here

Advertisements

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.
This entry was posted in Uncategorized. Bookmark the permalink.