With more than 70% of 401(k) plans including target-date funds in their investment lineup, and a growing number of plans adopting auto enrollment and using TDFs as their default fund, you’d expect... Read More
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Target Date Funds
BY NAPA Net Staff | 4/27/2016
On April 25, 2016, we published a post entitled, “Next Wave of RFPs: Target Date Funds.” That post contained what the author purported to be a direct quotation from Richard Dunne, President and CEO... Read More
BY Fred Barstein | 4/25/2016
[REVISED APRIL 28 — SEE EDITOR'S NOTE BELOW]During a discussion about what’s working for his practice, an advisor said that he is having great success with both clients and prospects by leading with... Read More
BY NAPA Net Staff | 4/13/2016
A new report finds that over the past 10 years, target-date fund assets have increased from $116 billion to $763 billion, and enjoyed an all-time high of $69 billion in positive net asset flows in... Read More
BY Fred Barstein | 3/9/2016
At a recent luncheon with elite plan advisors, the issue of using a record keeper’s proprietary target-date funds came up. One advisor stated that he hated it when the record keeper offered to lower... Read More
BY NAPA Net Staff | 3/2/2016
The good news is that most participants aren’t putting all their retirement investment eggs in one basket. The bad news is that we’re talking about target-date fund investors.In fact, a new survey... Read More
BY NAPA Net Staff | 2/11/2016
Target-date funds lost ground last year for the first time since 2008, but the performance gap has narrowed considerably since then, according to a new report.In its first annual loss since 2008, the... Read More
BY NAPA Net Staff | 2/8/2016
A new survey finds that target-date fund users are more confident than non-users that they will reach their retirement goals, and feel greater comfort with investment decision making. On the other... Read More
BY NAPA Net Staff | 12/29/2015
A growing number of plan sponsors are embracing the notion of a “custom” target date fund for their plan, rather than an off-the-shelf offering – but the rationales for and against such options... Read More
BY NAPA Net Staff | 12/14/2015
In a month of mixed returns, participants who took the time to initiate a transfer seemed to be moving away from defaults.Once again target-date funds (TDFs) took the brunt of the outflows: 59% ($118... Read More
BY Nevin E. Adams, JD | 12/7/2015
A surprising number of participants think target-date funds are guaranteed — with some even more surprising rationales for that belief, according to a new survey.Target-date fund users most... Read More
BY NAPA Net Staff | 10/16/2015
It’s been a busy time for target date funds, according to a new report.About 1 in 10 plan sponsors replaced their target date fund/balanced fund manager in 2014, while the proportion of plans that... Read More
BY Fred Barstein | 8/5/2015
Pendulums tend to swing to extremes before they stabilize. It seems that everyone is advocating a move towards professionally managed investments like target-date funds (TDFs) for most participants.... Read More
BY Michael Bushnell | 8/4/2015
Roth IRAs are growing in popularity, particularly among younger workers, and the use of target date funds in those plans is also rising, according to a new study from the Investment Company Institute... Read More
BY Fred Barstein | 7/20/2015
A knock on the current crop of TDF providers is that many have underlying investments largely comprised of proprietary funds.It seems to make sense to be able to select best of breed for each asset... Read More
BY NAPA Net Staff | 7/20/2015
Target-date funds continued to draw a plurality of new contributions, while participants continued to transfer funds from company stock, according to a new report.TDFs received the most new money in... Read More
BY Nevin E. Adams, JD | 7/7/2015
In a remarkably short period of time, target-date funds have become an integral component of the typical 401(k) menu, and a growing share of 401(k) plan assets — particularly those of newly hired 401... Read More
BY NAPA Net Staff | 6/12/2015
Last year, four-in-ten contribution dollars were directed to target-date funds, according to a new report.Eighty-eight percent of plan sponsors recordkept by Vanguard offered target-date funds at... Read More
BY Michael Bushnell | 6/3/2015
As target-date funds grow in popularity, plan advisors need to focus on educating plan sponsors about much more than basic fiduciary duties, Don Trone believes. In his Spring 2015 column in NAPA Net... Read More
BY Fred Barstein | 5/15/2015
Though the big three target-date fund providers (Vanguard, Fidelity and T. Rowe Price) have over 70% market share, the percentage of plans using their record keeper’s proprietary TDF is slipping.... Read More
BY NAPA Net Staff | 4/29/2015
Target-date funds continued to receive the majority of new contributions into individuals’ accounts last month, according to the AonHewitt 401(k) Index.In March that meant that $498 million, or... Read More
BY Fred Barstein | 4/24/2015
Custom TDFs are starting to become popular in larger DC plans. But do they make sense for plans with less than $1 billion? According to a report by consultants at Rocaton, the answer is yes, but only... Read More
BY NAPA Net Staff | 4/20/2015
While most participants say they have heard the terms “contribution rate” (82%) and “vesting” (77%), only half (50%) had heard of target-date funds, even fewer (39%) had heard... Read More
BY Fred Barstein | 4/16/2015
When it comes to analyzing investments, TDFs are different. Yet many people make the mistake of rating them like any other investment. TDFs are different because they are a portfolio of... Read More
BY NAPA Net Staff | 4/9/2015
Morningstar’s 2015 Target-Date Fund Landscape report is out — and the news is good for retirement savings plans. The report notes that the annualized asset-weighted investor return... Read More
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