Target date funds

Russell Investments goes a step further than target-date funds based on participant demographics at the plan sponsor level by enabling automated TDF customization at the participant level.

While the 401(k) marketplace is crowded with asset managers anxious to create customized target-date funds based on participant demographics at the plan sponsor level, Russell Investments goes a step further by enabling automated TDF customization at the participant level.

Shorter term Treasury Inflation Protected Securities — those with a bond maturity of zero to five years — do a better job of controlling inflation in a target-date fund than mid-term or long-term TIPS, according to SEI.

Shorter term Treasury Inflation Protected Securities — those with a bond maturity of zero to five years — do a better job of controlling inflation in a target-date fund than mid-term or long-term TIPS, according to SEI.

Already included as core offerings in most employer plans, SEC money market reform will likely make them even more attractive.

Simplicity and cost-effectiveness have helped drive increased usage of TDFs among retirement plan members and experts say the investment vehicle will likely see more customization in the future.

Simplicity and cost-effectiveness have helped drive increased usage of TDFs, which will likely see more customization in the near future, experts say.

Workers’ understanding of target date fund is lacking, leading to a failure by many to rebalance other assets in their retirement plan portfolios, new research suggests

Research from Financial Engines suggests many TDF investors ‘misuse’ the funds because they fail to rebalance other assets in their retirement plan portfolios.