U.S. Department of Labor Targets Target Date Funds


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.


Target Date Fund Fiduciary Checklist - Coming Soon

According to the U.S. Department of Labor's website, plan sponsors will soon have a fiduciary checklist about how to evaluate and select target date funds as part of the 401(k) plan mix. Given that nearly one out of two plans offer target date funds as an investment choice and that there are numerous questions about related investment best practices, the guidance comes none too soon. Click here to read more about the Spring Regulatory Agenda of 2010.