Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
|
Bates & Company, Inc.
|
Compass
|
Regional Vice President of Sales The Retirement Plan Company
|
AimPoint Pension
|
Loan & Distribution Specialist AimPoint Pension
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
The Failure of Target Date Funds
Jim Lauder in RIABiz [Opinion] July 31, 2013
"Most investors are uncomfortable with even a 10% loss near retirement, but in 2008, most 2010 target date funds lost much more than that -- even up to three times that. In 2008, the Morningstar target-date 2000-10 category average was down 22.46%.... However, it's wrong to say that a retirement plan provider on either end of that spectrum did a poor job or failed those participants.... Was the philosophy of taking above-average risk in an effort to mitigate longevity risk and lack of adequate retirement savings wrong? Not necessarily. Was that philosophy misunderstood by some fiduciaries and investors who experienced above-average 2008 losses? Absolutely."
|
Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the linked news item's title). |
An important word about authorship: BenefitsLink® created this link to the news item, but we are not the news item's author (unless expressly shown above). |