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

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