Are Target-Date Maturity Funds Right for Your Retirement Plan?

When it comes to planning for retirement, many people turn to target-date maturity funds for their set-it-and-forget-it appeal. In fact, if you have a 401k or an IRA rollover, chances are you have a target-date maturity fund. These are designed to automatically adjust your investment mix as you approach retirement, gradually shifting from a higher allocation of stocks to a more conservative mix of bonds and cash. This sounds ideal, but is it?

In this episode, David and Walter discuss an interesting article by The Washington Post that questions whether these funds truly deliver on their promises.

 

Here’s some of what we discuss in this episode:

• The popularity of target-date funds and how they work
• The performance of target-date funds over recent years
• What the 2025 portfolio looks like today
• The differences between Vanguard, Schwab, and Fidelity funds
• Understanding the drawbacks of these funds

 

The Washington Post Article:

https://www.washingtonpost.com/business/2024/07/23/target-date-funds-retirement-savers-explainer/

 

For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.