Target-date 401(k) mutual funds are often presented.
As the easiest option in a 401(k).
The “set-it-and-forget-it” all-in-one 401(k) investment strategy.
Pick the year closest to your retirement.
And let the target-date mutual fund do the rest.
Here’s what’s happening behind the scenes.
A target-date 401(k) mutual fund follows a preset glide path.
Early on, it invests in aggressive growth stocks.
As the “target-date” approaches it shifts to conservative investments.
The glide path is like a train on tracks.
It moves smoothly forward all the time.
Not checking who’s on board, where they’re getting off, or what’s changed.
Target-date mutual fund investment objectives.
Don’t often line up with the individual 401(k) investor who buy them.
There are no other elements in your life where you cannot pay attention.
Why would you think any 401(k) mutual fund would be an exception?
You don’t need to micromanage your 401(k).
You don’t need to become a stock and bond market expert.
But you do need to know the investments in your 401(k) mutual funds.
Take a moment this week to look at what your 401(k) is actually invested in.
And ask whether it still reflects your comfort level of stock and bond market risk.
Ready for a reality check on your 401(k) target-date mutual fund autopilot?
If so, let’s get a connection started here.
P.S. A check-in with your target-date mutual fund can boost your 401(k) confidence.
