Go From "Do-it-Myself" to "Do-it-For-Me"
Many of us like to make our own investment decisions. But how many of us can realistically pick an investment mix that is aligned to our retirement goals? That's the beauty of professionally-managed target date funds. These well-diversified vehicles automatically shift their asset mix according to your predetermined "glide path," becoming more conservative as it nears the year in which you expect to retire.
If you're not invested in target date funds, take this week to learn how the appropriate target date fund can help you reach your retirement destination.
Each portfolio has a number (a target date) at the end of the name that designates an approximate year in which an investor plans to start withdrawing money. The blend of investments in each portfolio is determined by an asset allocation process that seeks to maximize assets based on an investor's investment time horizon and tolerance for risk. The strategic asset mix in each portfolio systematically rebalances and becomes more conservative (less equity exposure) over time as investors move closer to the target date. The principal value of a target date fund is not guaranteed at any time, including at the target date.
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BlackRock offers insight on the new world of retirement by helping people understand what target date funds seek to accomplish and how they can make retirement investing easier.
"So what do I do with my money?" Start saving for retirement today by paying your future self first, make it easy by making setting up features in your retirement savings plans that make it automatic.
Make it easier.
Make it automatic.