Target Date Funds
Target Date Funds, like the Target-Risk Funds, make the problem of fund selection and asset allocation decision easy for plan participants. But the Target Date Funds do so in a very different way.
- Target Date Funds are funds with predetermined asset allocations appropriate for individuals with different expected retirement dates.
- Asset allocation changes automatically over time from more aggressive to more conservative as that expected retirement date approaches.
- The ten funds offered by First American have target dates from 2010 to 2050 in increments of five years.
- Each fund consists of up to six index funds and one actively managed fund of Treasury inflation-protected securities (TIPS).
- Plan participants simply choose the fund with the target year closest to their expected retirement date.
- If the personal time horizon remains unchanged, no further action by the investor is needed.
|Not FDIC Insured||Not Bank Guaranteed||May Lose Value|
|Not Guaranteed by any Government Agency||Not a Bank Deposit|