Set date in the Investment Plan

Aug 6th, 2022
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Theyre even a smart move for people who are inclined to frequently change their fund allocation inside their 401(k). Studies have found that target-date funds help to keep people disciplined in their investment choices, which increases returns. Another positive is the trend toward lower fees. Is a Target-Date Fund the Best Choice? - Investopedia investopedia.com retirement targetdate-f investopedia.com retirement targetdate-f
A target-date fund is a mutual fund (or exchange-traded fund) that gradually rebalances and reallocates assets as you get closer to retirement, typically shifting the majority of assets from riskier investments such as stocks to more conservative investments such as bonds and cash. Target-Date Funds: What They Are, How They Work - Bankrate Bankrate retirement target-date-fun Bankrate retirement target-date-fun
Target-date funds are structured to maximize the investors returns by a specific date. Generally, the funds are designed to build gains in the early years by focusing on riskier growth stocks, then they aim to retain those gains by weighting towards safer, more conservative choices as the target date approaches.
Payout Options Investment Plan. You can take a full or partial lump sum distribution of your account balance. You have a lump sum cash payment that you can use to pay health expenses or other necessary expenses (review the Tax Implications). Getting Ready to Go - MyFRS myfrs.com ready myfrs.com ready
Target-date funds provide a simple way to save for retirement. They offer exposure to a variety of markets, active and passive management, and a selection of asset allocation. Despite their simplicity, investors who use target-date funds need to stay on top of asset allocation, fees, and investment risk.
Theyre even a smart move for people who are inclined to frequently change their fund allocation inside their 401(k). Studies have found that target-date funds help to keep people disciplined in their investment choices, which increases returns. Another positive is the trend toward lower fees.
Changing Your Asset Allocation As You Age Many financial experts suggest adjusting it as you grow older, opting for a more conservative mix as you get closer to retirement age. As mentioned above, target date funds will automatically decide this appropriate allocation for you and change as you age. How to Rebalance 401(k) Assets - Investopedia investopedia.com articles personal-finance investopedia.com articles personal-finance
Thats how youll know your target date year. For example, a 22 year-old teacher today planning to retire at age 66 might invest in a 2065 target date fund. The year in the name of the fund is the approximate date that an investor would plan to start withdrawing money.

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