401K Reinrollment: Why Your Money May Be Put Into Target-Dated Funds
401K Reinrollment: Why Your Money May Be Put Into Target-Dated Funds
Target-dated funds are mutual funds that automatically adjust the asset mix of stocks, bonds and cash usually based on the investor’s future retirement date. Companies have been offering these options for their employees for many years. Some companies are now even having employees have to acknowledge if they don’t want to have their money put into target-dated funds.
In the hope of helping employees keep their money safe, companies are stepping in and trying to control where they hold their retirement funds. Employees can continue to choose from their company’s listed fund choices, but if they don’t opt out of the target-dated funds, their money may just be moved for them.
For those people who don’t want to hassle with choices and watching their funds, this may be a good choice. For those who are more financially savvy, the target-dated funds may not appeal to them; they may prefer to have control over their investments.
There are pros and cons to using target-dated funds based on gender, age and risk tolerance. For more information about target-dated funds and employers utilizing them, check out a recent article by the Wall Street Journal by clicking here.
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Dr. Diane Hamilton is Interviewed by Dean Voelker
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07/31/2010 – Dr. Diane Hamilton (Current Show) click this link to hear the show
Click on the above link and go about five minutes into the show to listen to Financial Talk Show Host and Author, Dean Voelker, interview Dr. Diane Hamilton about young adults, money, online learning, careers, and even Lady Gaga. . . Stay tuned until the end to hear more about Diane’s books: The Online Student’s User Manual, How to Reinvent Your Career and Ten Things The Young Adult Needs to Know to Be Financially Savvy.