Comments on: Pros And Cons Of Investing In Target-Date Retirement Funds.

By: Michael

Michael — Thu, 13 Jan 2011 16:08:22 +0000

Annuities are fine.

But, one has to ask themselves, “Am I still just a kid needing an allowance?”

Learning to invest for retirement is easy. Its not taught to you growing up. I was lucky on the draw for parents. I was made to learn the relationships of currency, interest rates, stocks, bonds, commodities and real estate.

My family listens: cash & bonds in 1999. stocks & commodities in 2003. cash & bonds in 2007. stocks & commodities in 2009.

Real estate buys are everywhere.

Follow interest rates published by central banks. Central Banks control the value of currencies, thus, inflation and deflation, plus economic growth.

Sounds simple, it is!

By: Finance Articles

Finance Articles — Wed, 19 Mar 2008 09:10:42 +0000

The target date-funds from T. Rowe Price, Vanguard and Fidelity are too new to consider their track records. Consumers should examine the asset allocation and be sure that it fits their tolerance for risk. If the fund is too aggressive pr conservative them, it may be best to consider other options. Indeed! Most fund companies will use a roster of their own funds in a target date portfolio.

-Joanne

By: Tomiko

Tomiko — Sat, 19 Jan 2008 10:26:41 +0000

Hi, i never thought seriously about the situation. really i was completely unaware about such things. Thanks for this information now i got to know why always i was seeking help in my hard time after retirement. Thanks for this useful information.

By: David

David — Fri, 18 Jan 2008 04:25:26 +0000

Hey Ciaran, thanks for stopping by and hope you come by often!

By: CiaranFromChance

CiaranFromChance — Fri, 18 Jan 2008 04:23:21 +0000

Hey David,

I think target retirement funds make a lot of sense for the huge majority of people. The more passive you are, the more they make sense. I don’t really think there are any discernible drawbacks for the average retirement investor.

The only time people get into trouble with these is when they think it’s only a part of their retirement allocation, as opposed to all of it. Sometimes they throw them into their mix with all the non target date retirement assets creating some overlap. That would be the one piece of advice I’d offer investors thinking about them

Look forward to coming here more often, just got my feedreader updated and ready to go for the future..

By: Mrs. Micah

Mrs. Micah — Thu, 17 Jan 2008 23:02:32 +0000

I would definitely take one in my 401(k) if I didn’t have the option of picking Vanguard funds. Otherwise I like a certain latent amount of control.

By: Money Blue Book

Money Blue Book — Thu, 17 Jan 2008 20:04:47 +0000

I think the target date funds are great if you are a newbie and don’t have much of a financial background. Those with more knowledge are probably better off doing their own leg work.

By: LJ

LJ — Thu, 17 Jan 2008 19:35:52 +0000

I am a huge fan of the target date funds and have my roth ira at t. rowe price as well. I like because I can really let it be, it is after all, a long term investment.
With my husband’s 401K, we have to pick the investments, track them, allocate, re-allocate, etc. and having to that for one account is enough for me!

Great Article!

Take Care

By: David

David — Thu, 17 Jan 2008 19:20:57 +0000

Actually, mine is OK. If you judge any fund because of the market we are in, most funds are down – that’s what long-term investing is all about.

By: boomer

boomer — Thu, 17 Jan 2008 19:17:12 +0000

I’m curious. have you checked the health of those target retirement funds recently? How are they doing?