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The Hidden Risks in Your 401k- Season 8: Episode 7

In the world of investing, time can be one of your biggest allies.  As your time span grows shorter, though, your risks tend to go up: if you need your money sooner rather than later, your stock investments could take a downturn at just the wrong time, leaving you without the funds you need.

A Target Date Fund in a 401k is designed to deal with this time-related risk.  As you get closer to retirement, and thus closer to needing your funds, the investments are supposed to become more conservative overall, less volatile, with the goal of preserving your principal.

But it doesn’t always work out this way.  Find out from podcast host Johnny Dean and “Professor” Rick Plum, CFP® why these funds may actually cause greater risk to you inside your 401k on this week’s episode of Managing Your Financial Future!

Important Information:

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.

Target-date funds are subject to the volatility of the financial markets, including equity and fixed-income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and commodity-related, foreign securities. Principal invested is not guaranteed at any time, including at or after target dates.

Before investing, carefully consider a target-date fund’s investment objectives, risks, charges, and expenses. To obtain a prospectus or summary prospectus, which contains this and other information, call your financial advisor. Read the prospectus carefully before investing. The principal value of a target fund is not guaranteed at any time, including at the target date.

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

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