US. How ‘easy’ target-date funds can endanger your retirement
Americans love “set and forget it” products. Like rotisserie roasters and slow cookers that prepare delicious dinners while we’re miles from the kitchen, any approach that takes out complexity is beloved in our harried, overworked society.
That’s why index funds are growing so rapidly. Why pay an adviser good money to pick stocks when the data show that the market SPX, -0.02% return slays actively managed funds?
That’s good. But “set it and forget it” is also the driving force behind target-date funds, which combine a set of investments into a single, age-specific portfolio.
Read More: Market Watch
