Target date funds, good idea or not?

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Target date funds are becoming an increasingly popular choice for investors in their 401k’s.  Industry consulting firm Cerulli Associates Inc. estimates that 20% of assets and 42% of contributions are already in target date funds, and by 2018, they project those numbers to grow to 35% and 63% respectively.  Casey, Quirk & Associates shares a similar perspective, projecting that almost half of defined contribution assets will be in target date funds by 2020.  So, we know they are popular, but are they good for you?

Pros of target date funds

The main selling point of target date funds is reducing the work an investor must put in to manage their portfolio.  By allowing an investor to buy a single all-inclusive security that gradually becomes more conservative as Continue reading…

    Can I really invest successfully on my own?

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    This is a question I am often asked, but in order to give you an answer, we must first define what success means.  To me, it’s quite simple.

     Success is being able to adequately fund your life goals. 

    It does not mean you “beat” the market, picked the next Facebook or made more money than your neighbor.  You may or may not have done those things along the way, but investing is a means to an end, not an end in and of itself. Continue reading…