JPMorgan Finds Flaws in Target-Date Funds' Design

Some target-date funds are poorly designed, JPMorgan reports in a new white paper. First, rather than concentrating on providing income to a participant over the course of their retirement years, which may vary widely, JPMorgan recommends concentrating on replacing a percentage of a participant's income at the time of their retirement, since that is a date certain, whereas no one knows how long they will live.

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