In its May 6, 2010 guidelines about target date funds, the U.S. Department of Labor encourages investment decision-makers to:
- Consider investment style
- Carefully review a fund's prospectus for information about asset mix
- Evaluate how investments could vary over time
- Think about an employee's timeline for income needs
- Examine the fees being charged.
Whether you agree that target date funds are a retirement plan salvo, there are numerous risk issues to take into account and manage. Look for details about upcoming educational events on the topic of target date fund risk management.