…and asset allocation funds are generally designed to be the sole investment for the retirement savings of experienced and novice investors alike, although they can also serve as the core of any portfolio. WHO IS A GOOD CANDIDATE FOR TARGET DATE FUNDS? Target date funds…
…investment fund. WHAT TYPE OF INVESTOR SHOULD CONSIDER ASSET ALLOCATION FUNDS? Asset Allocation Funds may be a good option for investors seeking a total portfolio solution created and managed for them by investment professionals. WHAT ARE TARGET-DATE FUNDS? Target Retirement Funds seek to provide investors…
…strategy, which relies on target-date funds. Basing your savings strategy on or around your expected target retirement date will provide your investment professional with invaluable guidance in designing your investment plan. The difference between a target date of 2020 versus 2025 can have a significant…
…Benefit Target percentage is between 10% and 80%. Salary is High-5 or High-3 Year Average. Service prorate is a factor used if an employee will not have met the target service by age 65: Factor = Service at 65 Target Service Otherwise the service prorate…
…Of course, it’s also not true that “one size fits all” when it comes to retirement funds. Clearly delineating the pros and cons of target date funds, stable value funds of various cap size – in other words, diversity – is of critical importance. Ideally,…
…no rebalancing over the 2008-2021 period, the portfolio drifted from its initial 60%/40% target stock/bond mix to 77% stocks and 23% bonds, a far more aggressive allocation. Even just annual rebalancing moved the mix much closer to the 60%/40% target. While monthly rebalancing resulted in…
…had a big head start, there have been large flows into passive funds. According to Morningstar, actively managed mutual funds held $9.4 trillion at the end of 2015, while passive funds totaled $4.5 trillion. However, recent flows show a different story. In 2015, there was…
…use in a potentially harmful way. Before the advent of auto enrollment and target date funds, many participants “picked” a salary deferral rate and “picked” one or more investment funds without much strategic thought, inadvertently establishing “anchors” through which they might evaluate future fluctuations in…
…in the fund NAV and gates on fund withdrawals. In fact, there has been pressure on non-government money market funds as investors have been moving out of these funds into government money market funds as the October 14th date approaches. In our view, rules that…
…and regulated. Two types of open-end funds are mutual funds and exchange-traded funds (ETFs). An ETF is organized like a mutual fund but trades like a stock. Both open-end funds and CEFs charge an expense ratio to investors. In addition, both open-end funds and CEFs…
…of your employee population are at risk for not achieving their retirement goals-whether employees are utilizing asset allocation and target date funds, and whether catch up contributions are being maximized. WHAT SHOULD WE LOOK AT WHEN EVALUATING PLAN FEES AND EXPENSES? One of the more…
…especially investors who are trying to figure out US Capital Markets. The “Nothing” that happened involves the Federal Funds Rate, the target overnight interest rate for inter-bank borrowing or lending. This is where US depository institutions, in the tightly controlled, invitation-only world of Federal Reserve…