Monday, February 15, 2010

The case against target retirement funds

The case against target retirement funds
Target retirement funds consider only asset allocation for a person’s age. Further most of these funds are composed of funds from the same family giving the investor less diversification than you would think. Lastly many of the funds in these target funds are bloated.
My advice is to come up with your own asset allocation and buy mutual funds to fit your needs. Short of that if you unwilling to do that invest in a couple of good balanced funds.
The case against target retirement funds

1 comment:

  1. Look for the other possible options, then weigh them. That way, you'll be able to narrow down your choices since you'll be listing down the pros and the cons of the available options. Since this is your retirement fund, then it's best that you would carefully think things through, and take note of the measures you should do, if you encounter a risk along the way.

    Dionne Daniel