Why Target Date Funds Are Not What They Seem to Be- Episode 144
The idea behind a Target Date Fund would seem logical – a kind of “set and forget it” investment that (presumably) gets safer as you age, giving you less exposure to stock market volatility the closer you get to retirement.
But on closer examination, Target Date Funds are not the panacea they appear to be. Yes, there are some qualities that make them worth owning, but as an investment that can carry you from youth to retirement – their original design – they fall short of the mark.
What’s the reality regarding Target Date Funds? Tune in to today’s episode with podcast host Johnny Dean and Rick “The Professor” Plum, CFP® and find out more!
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 should not be considered a solicitation of an offer to sell/buy any specific security or offering. Investors should consult a financial professional to determine whether risks associated with an investment in the shares are compatible with their investment objectives.
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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