Category: Retirement

A Better 401(k) Default Investment

Source: Leland Hevner / President, National Association of Online Investors (NAOI) / Nasdaq Target Date Funds (TDFs) are mutual funds that hold both Stock and Bond equities with an allocation of money to each asset class determined by the number of years until the investor’s retirement date – i.e. their “time-horizon.” Individuals with a longer time-horizon, e.g. 20+ years, are given a TDF with a larger allocation to Stocks that can provide higher expected returns