In a previous blog post, I talked about target-date asset allocation models and why at Fort Pitt we prefer a risk-based approach (check it out here). Recently, I was asked to offer insight to a CNNMoney.com piece about target-date funds. The piece asked the question, “Is your target-date fund ripping you off?”
Taking a similar stance as we did in our blog post, the reporter looks at how all target-date funds are not created equal and if you are going to invest in this vehicle, “You really need to get under the hood of these things and figure out what’s appropriate for you.”
Read the entire article to get a better understanding of what to look for if you are planning to utilize a target-date fund. Remember to look at fees, time horizons and the fund’s allocation!