• Funds
    Three great target date funds for your nest egg

    Target date funds are all about setting a date, and forgetting all about it until retirement. New to the concept, and looking for some great investment firms to help you out with your plans? What makes a great target fund is that it doesn’t impede the retirement investment plan during its fund allocation processes. Growing your fund for retirement doesn’t have to be hard. Approach the right firms with the right intentions.

    Here are a few great choices if you are looking to invest in target-date funds.

    • Vanguard Target Retirement 2050 Fund
      What makes Vanguard great is that it’s an ideal mutual bond firm. It’s similar to your own personal investments, and easy track of it. It works like a mutual fund company and is majority owned by its investors, hence the low fund fees.
    • Their target date funds range in five-year increments (from 2020 to 2060) and they invest in only four indexes. The Total Stock Market, Total Bond Market, Total International Stock Market and finally, The Total International Bond. What makes it even more secure is that the plan is designed to create greater investment returns.
    • If you’re planning on buckling up and building your nest egg for your retirement years, then this one might be the best option for you.


    • BlackRock LifePath Index 2050
      This plan uses index funds to minimize expenses and pass on the returns to their investors.
      The LifePath fund manages their asset allocation by investing in the BlackRock & iShares branded index funds. There are about seven funds held together in their 2050 fund.
    • This plan starts out aggressively, with its 2055 fund holding 94% of its assets in stock in the beginning. As the years go by, it starts holding reducing its assets in stock. Finally, when nearing the years of retirement, that number falls down to only 40% in stock.
    • It’s one of the most conservative target-date funding plans. BlackRock keeps the investor’s retirement date in their best interests.


    • T. Rowe Price Target Retirement Funds
      If you’re close to retirement, then the T. Rowe Price Target Retirement Funds might be suitable for you. It’s considered to be one of the most actively managed target date retirement funds.
    • Stock holdings drop to 20% of the portfolio 30 years after the retirement dates have crossed.
      As a fund company, T. Rowe is an excellent choice for late starting investors. They charge a heavy expense ratio for their services, about 0.75% for its 2050 fund.
  • Funds
    Target date funds, investing explained

    Target date funds can be a great instrument for financial savings for retirement. It’s pretty simple: you pick a fund, start pouring your savings into that fund, and forget about until you retire.

    Target date funds have a specific date. For instance, you may plan to retire in 2050. Then, the funds keep piling up to a certain designated amount you need for your retirement. You get to maintain your current lifestyle, minus the work, after your retirement.

    So, who actually benefits from these? Specifically, how exactly do you know whether this will work for you since there are tons of other retirement plans besides target date funds? Here’s how target date funds can help you find out whether you’re a right fit.

    You Let A Professional Handle Matters For You
    Let’s say you’re the type of person who wants to leave asset allocation to a professional fund manager in order to get peace of mind. If you are, a target date fund is just what you need. Here, you don’t have to worry about conducting research, choosing your stocks and bonds, setting up the asset allocation based on their performance, and so on. All of that is left in the capable hands of a finance professional.

    You Stick To Long-Term Goals
    If you’re a good goal setter—and are good at following through and completing long-term financial goals, such as setting funds aside till retirement—then target date funds suit you. A rash decision to withdraw funds before the target date can undo all your hard work. This is especially beneficial if your life is stable, meaning you don’t pay medical bills, and you’ve got great health and a stable career. Good candidates for target date funds are those already prepared for sudden changes in financial situations due to unforeseeable life events.

    You Don’t Want To Pay Multiple Management Expense Ratios
    Target date funds usually hold stocks, bonds, ETFs and equities. You’ll need to research, monitor and balance your investments in a way that one of them doesn’t make you portfolio overweight in that sector of the industry. Only if you can do this are target date funds a good fit. The best part, you avoid paying broker fees, online trading fees and any forms of multiple management expenses. Your assets get allocated accordingly, and your investment portfolio gets balanced by a professional till your retirement date.

    If you are someone who can meet certain required criteria, don’t mind volatility in the stock market, and don’t want to actively manage your retirement savings accounts, target date funds may be what you need.