May 9, 2017—Target-Date Funds can be a poor investment “shuttle” for plan participants, as eventually discovered by many employers who act as “Mission Control” for their corporate retirement plans. In meetings with 401(k) and 403(b) plan sponsors, I frequently learn that these employers believe they have successfully launched employees on a flight path toward retirement success by offering a Target Date Fund series in their plan. Unfortunately, plan participants invested in a Target Date Fund can find themselves financially “lost in space” when they retire, due to common misperceptions regarding TDFs, as well as the funds’ complex and often confusing nature. This backfires on the high hopes of employers to assist their employees in preparing for their financial futures.
April 7, 2017—People often say to shoot for the stars, because if you miss you’ll at least hit the moon – which is easy to say if you aren’t an astronaut! An astronaut would probably tell you that if you miss your target you’re not likely to land on the moon, but in the vast emptiness of space, drifting longer than planned and hoping your supplies will last is hardly a successful mission.