What is a Target Date Fund and Should you Invest in One for Retirement?

Stay Wealthy Retirement Podcast

Taylor Schulte, CFP®

Financialplanning, Retirement, Money, Taxplanning, Stocks, Wealth, Business, Investing, Retirementplanning

2.4 • 606 Ratings

🗓️ 17 September 2019

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

If you are investing for retirement, you’ve probably come across target-date mutual funds. You may even be investing in one in your 401K and not realize it.

So, you’re likely wondering what they are and why they are so popular.

The thing is, target-date mutual funds are just like other mutual funds - some are conservative and others are risky.

The trick is making sure they are balanced well when you’re most vulnerable.

So, who has the right mix for you? And are they the right strategy for your plans?

Today, we’ll discuss four things to help you decide if target-date mutual funds are the right investment for your retirement dollars and how to know if you’ve got one that matches your goals.

What a target-date fund is (and why they are so popular)
The different types of target-date funds and how to tell the difference
Why some are more expensive than others and what that means
What you should look for to determine if they are right for your retirement goals

http://www.youstaywealthy.com/53

DISCLAIMER: This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. This podcast is not engaged in rendering legal, financial, or other professional services.

Transcript

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0:00.0	If I was going to invest my money in a target date mutual fund, I would look for the lowest cost
0:05.2	one that I could find that matches up with my retirement date, my retirement goals, and my
0:11.2	tolerance for risk. Welcome to the Stay Wealthy podcast. I'm your host Taylor Schulte and today,
0:18.9	well, today I have to be honest, I'm missing my two boys today.
0:22.8	I've been on the road for almost two weeks now and it's officially the longest I've ever been away from them.
0:28.8	I was out in Washington, D.C. speaking at a conference for a few days and then my wife was super nice.
0:35.0	She flew out there without the kids and she joined me halfway through and then
0:39.3	we spent some some time touring around D.C. because we had never been there before. We'd never been to
0:43.6	Washington, D.C. So we decided let's spend a few extra days there and check it out. So we had a blast.
0:48.8	Now I'm in Denver with some of the top financial planners in the country and we're learning from some
0:54.1	really talented people how we can better help and serve our clients and help. with some of the top financial planners in the country and we're learning from some really
0:54.3	talented people how we can better help and serve our clients and help them plan for retirement.
0:59.5	So I finally head home tomorrow evening and I'm really excited to see my kids and give them a big
1:05.1	hug. Anyhow, okay, with the sappy stuff out of the way, thanks to a very thoughtful email from a listener of
1:11.8	ours in Manchester, New Hampshire. Today, we're going to cover just about everything you've
1:16.9	ever wanted to know about Target Date mutual funds. And I'm not going to waste any time doing this.
1:22.3	It's this simple. If you are investing your money for retirement, you have probably come across
1:27.4	target date funds, which means this episode is for you.
1:31.0	For all the links and resources mentioned in this episode, go to you staywealthy.com forward slash 53.
1:42.8	Okay, so let's start with the basics.
1:44.8	What exactly is a target date retirement fund?
1:48.4	If you've ever seen a mutual fund with a year in its name, that is a target date fund.
	...

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