Use of Target Retirement Date Funds Varies

Despite the wide-spread use of target retirement date funds in retirement plans, many participants using the products may still not be properly allocated. This misallocation may be stemming from the improper use of the funds. Many participants use multiple target-year funds or mix the target funds with other funds from the core menu of the plan. Mixing the products with other funds may ultimately defeat the work the provider of the product does in creating the underlying allocation and glidepath of the target retirement date products. Click here to read an Investment News article on a recent study from Vanguard.