How to select the right TDF for a 401(k) plan
InvestmentNewsAugust 15, 2017
Target-date funds are an attractive option for both plan advisers and participants.
The promise of TDFs is that they are designed to protect investor assets from the risk of large losses stemming from inadequate or improper portfolio diversification. For advisers, this is directly aligned with the obligation under the Employee Retirement Income Security Act of 1974 to protect assets. For participants, the funds simplify investment decisions.
But simply choosing any TDF won't do, because there are underlying risks of choosing the "wrong" TDF relative to other available options.
In this InvestmentNews article, Blaine Aikin, executive chairman at Fi360, offers some tips on selecting the "right" TDF while using a prudent process.