Target-date mutual funds in your 401(k).
Not the “safety nets” you are promised.
They’re mutual fund marketing tactics.
Wrapped in academic theory.
And they might not behave the way 401(k) investors expect.
In the next stock market stress test.
The last real stress test for target–date funds was 2008.
Many lost 30–40%.
Millions of individual investors filed lawsuits.
If your 401(k) defaulted you into a target-date mutual fund.
Do you know what you’re actually invested in?
Or what you hope you’re invested in?
Your company didn’t choose the 401(k) target-date mutual funds.
Because they’re perfect for you.
They chose them because they’re the lowest–cost.
The Qualified Default Investment Alternative (QDIA).
For 401(k) participants who don’t pick their own mutual funds.
Don’t run the risk of not knowing for sure.
The stock market risk level of any 401(k) target-date mutual fund you own.
But how would you know?
Where would you even look?
Don’t let your 401(k) provider.
Choose your level of stock market risk in your 401(k).
Want to know if your “safe” 401(k) target-date fund is right for you?
Let’s connect and I can provide the exact answer.
P.S. A target-date mutual fund isn’t the one-size-fits-all solution for your 401(k).
