Retirement Reform Blog

Many 401(k) plan participants are likely familiar with target date funds.  Target date funds, also known as lifecycle funds, shift allocations of bonds, stocks and cash based on the expected year the plan participant will retire.  For instance, those who are decades away from retirement will have a greater allocation of stocks in their target date fund than those who are fast approaching retirement.  But a recent article in the Wall Street Journal argues that since target date funds are based on years until retirement and not individual levels of risk, they may not be the best investment choice for everybody.  Read more here.