If most potential clients walking through your door nowadays don't hold target-date funds in their 401(k) plans, that's likely to change in the next few years. The management consulting firm Casey Quirk estimates that such portfolios will account for about 48% of 401(k) assets in 2020, up from just 13% today.
Do target-date funds complicate an advisor's job? Should you recommend that clients adopt the target-date structure? Should you consider other packaged options that don't rely on date-specific portfolios? "For some clients, target-date portfolios make a lot of sense," says Bruce Bills, a planner in Henderson, Nev. "For others, not so much."
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access