Target date funds

From inflation concerns to an annuities bill circulating in Congress, there is a lot for clients to consider as they plan their exits from the workforce.

Affluent investors who have maxed out their retirement plan contributions hold target date funds in taxable brokerage accounts.

Vanguard’s cut in investment minimum left smaller accounts holding the tax bag

Advisors should emphasize the role sector funds play in a diversified portfolio when it comes to specific sector holdings, an expert says.

The vision is to democratize “high-quality, personalized advice at scale, just as the independent advisor has disrupted wealth management,” the companies said in a statement.

“Honestly, it’s a little frightening,” said Joel Schiffman, who oversees defined contribution products in North America for Schroders.

A 50% allocation to equities for someone in their 60s still leaves someone with a lot of risk right before retirement, writes Jared Dillian.

The funds had posted gains over the past decade, but have suffered losses amid this year's coronavirus-driven volatility.

These retirement vehicles can be less complex and cheaper than alternatives.

Steady gains made in equity markets last year were "clearly a tailwind,” an expert says.

“Investment allocations can differ from one fund to another, and so do the expense ratios,” an expert cautions.

Helping clients develop a solid investment strategy is an important step to help them survive market volatility.

Paying down debt, downsizing and reducing spending are a few ways retirees can grow their finances.

To build their wealth, retirement savers are advised to take advantage of tax-advantaged plans including 401(k)s and IRAs.

Clients adding investments other than target-date funds to their 401(k) or 403(b) could potentially hurt their bottom line.

Withdrawals for non-medical expenses would no longer be penalty-free under the proposal.

The Labor Department is poised to release a rule that would make it easier for small businesses to establish a multi-employer 401(k) plan for their workers.

Target-date funds can help risk-averse young clients ease into investing.

The firm expects shareholders will save an estimated $3.2 million, annually.

With the reductions, nearly all of the firm’s index funds will have total net expenses lower than comparable Vanguard products.