I am not a fan of Target Date Funds for two primary reasons. The first reason is the very real disconnect between the theory that bonds should be a part of every investors’ retirement portfolio (in the name of “safety”) yet
Tag Archive for bond funds
How Rebalancing of the Target Date Fund Among Your 401k Options Really Works.
by George Huss
This is an important enough concept to spend a bit more time explaining. Recall the Target Date Fund in your 401k, in theory, is to protect your retirement savings account by rebalancing your portfolio every year
The Risk of a Target Date Fund In Your Retirement Savings Account.
by George Huss
If your 401k plan has been amended to comply with the Pension Protection Act of 2006, which came into effect in January of 2008, you may find yourself as an investor in a Target Date Fund without having made that choice. This product was designed as a one stop shop for employees to prevent them…
The risk of Bond Funds among your 401k options.
by George Huss
One of the things I have seen in 401k plans is a scale measuring risk from low to high and the mutual fund choices available in the plan placed in the approximate location on that scale. One example of the progression from low risk to high risk is often represented as follows:
