You may have been hearing a lot of discussion on Target Dated Funds in the news lately, as more and more 401(k) plans are offering them in their fund line-ups. Target-dated Funds (also known as life-cycle funds) have an asset allocation based upon the participant’s expected retirement year. The asset allocation automatically changes overtime as the participant nears retirement. For example, a younger employee will have an asset allocation that is geared towards aggressive growth. As the retirement date nears, the mixture becomes more conservative.
Additional questions about Target Dated Funds and whether they are a good fit for you and your employees may be answered in this Hartford Courant article which answers commonly-asked questions on the topic.
NADART is pleased to offer Target Dated Funds as part of its Investment Choice line-up. Our representatives will be happy to answer any questions you may have about Target Dated Funds or any of our retirement products. Simply e-mail nadart401k@nada.org or call (800) 462-3278 ext. 7161.