Target-date funds just passed $4 trillion in assets. They’re now the default investment in many 401(k)s, and millions of Americans are using them without really understanding how they work. So, are they a smart choice or just the easiest one? In this episode, Steve unpacks the pros, cons, and misunderstood mechanics of target-date funds.
Here’s some of what we discuss in this episode:
📈 What target-date funds actually do behind the scenes
💼 Why target-date funds are often the default and what that means
🧮 The big gap between “easy” and “optimized”
💡 A real example of lost growth due to early bond shifts
📊 Why planning matters more than a picked retirement year
Morning Star article Target-Date Funds Have Delivered:
https://www.morningstar.com/funds/target-date-funds-have-delivered-investors
Get your copy of Power Up Your 401K in our toolkit: https://keap.page/ngt919/toolkit.html
Follow along on YouTube: https://www.youtube.com/channel/UCEE5ZkDedYTsKzkh2UxQ9Sg
Book your 401(k) Onboarding Meeting with Steve: https://calendly.com/steven-powerhouse-advisor/401-k-retirement-meeting-1-hour-clone?month=2024-12
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