A sample of approximate holdings (as of Aug. 31, 2020) with a target date of 2045 demonstrates this point. Target-Date Funds in Retirement Plans . An investment in a Target Retirement {{ fundOrTrust }} is not guaranteed at any time, including on or after the target date. Compare and contrast them with other types of retirement funds. 1. Our target date funds are designed to maintain a diversified, long term strategic asset allocation. Target date funds have more than one job to do. Before joining Fidelity in 2014, Mr. Sumsion held various positions at DuPont Capital Management, Inc., including that of managing director of asset allocation and portfolio manager. Some target date portfolios consist exclusively of mutual funds while others offer a mix of mutual funds and ETFs. A study in 2013 by Deloitte and the Investment Company Institute showed that 71% of defined contribution plans (e.g., 401k plans) offered target-date funds. Target date funds are identified by a specific future year in their name, such as 2040, 2045 or 2050. Let me tell you nine reasons investors should learn to love these boring funds. How Do Target Date Funds Work? ... Target allocation of the Fund may vary in accordance with the targets outlined in the prospectus. If you have a 401(k) plan, you may already be invested in a target date fund, since many plans use them as their “default investment.”Depending on your retirement goals, there are several investment strategies you can … They’re automatic, they’re built for the long term and they’re usually managed in a thoughtful manner. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap, commodity-linked and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds' target dates. Target-date funds can often shift into a conservative asset mix too quickly and stay there, Mr. Hallett said. In my view, a target-date fund is amply qualified to be among the “few things right” in the life of an investor. They are designed for those who are uncertain of the best way to invest for a child’s education or do not have the time to do it themselves. Target Date Funds Retirement Discoveries. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Target-date series that combine passive equity funds and actively managed bond funds are common today, but that wasn’t the case in 2012 when JPMorgan launched its Blend series. Even though Target Retirement {{ fundOrTrust }}s simplify the investment process, they still require some monitoring to ensure that the portfolio is in line with your current situation. The investment risks of each Target Date Retirement Fund changes over time as its asset allocation changes. Effective March 1, 2019, the MFS LifePlan 2060 Target Date Segregated Fund (LifePlan 2060) is available on Sun Life Financial’s Core investment platform. Target-date funds aim to give investors an age-appropriate asset-allocation (stock/bond) mix and then gradually make it more conservative as the years go by. These are target date funds that mature after 2035. But you can do better. Explore the pros and cons of target date funds so you can pick the one that best meets your needs. But they’re far from perfect. Canadian Fixed Income (Sun Life Granite Target Risk Funds only) SLGI announced the addition of a bottom-up, core plus mandate that they expect will broaden the opportunity set in Canadian bonds. RBC Target Education Funds are an innovative approach to education savings. Do you have target date funds in your retirement investments? Target date funds that blend active and passive investments have historically garnered limited attention, not due to lack of interest, but because of limited product offerings. To start saving, you simply select the fund that is closest to your child’s target education date. ... Having a target date makes it easier to design an investment plan that reflects both where you are and where you’re going. These fund suggestions are based on an estimated retirement age of approximately 65. After that point, the percentage of stocks declines gradually. They may also soften the downside of tough markets - especially as retirement appears on the horizon. Assumption Life SmartSeries 2040 Assumption Life SmartSeries 2045 Assumption Life SmartSeries 2050 Assumption Life SmartSeries 2055 BGICL LifePath 2050 Index Fund (QSZ) BGICL LifePath 2060 Index Fund (QJO) BlackRock CDN LifePath 2050 Index Fund BlackRock CDN LifePath 2055 Index Fund BlackRock CDN LifePath 2060 Index Fund BMO Target … Diversification does not ensure a profit or protect against a loss. Target-date funds check a lot of boxes. They're ideal for investments of at least 10 years. Target Date Target Date Funds have a mandate to grow assets over a specified period of time to reach a targeted goal. As the first target date fund, LifePath has seen investors through more market ups and downs than any other target date fund. First, they have to grow savings by managing decades of risks and returns. The popularity of target-date funds was sparked by the Pension Protection Act signed by President Bush in 2006. Investing isn’t a one-size-fits-all venture. A target date fund is a fund of funds—think of it as an entire retirement portfolio that adjusts its holdings from higher-risk, higher-growth funds to safer, lower-risk funds as you grow older. MFS Investment Management Canada (MFS) has added a new target date fund to its LifePlan Target Date Fund series (“LifePlan”). Susan ... D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. Skip to content. See all ETFs tracking the S&P Target Date 2040 Index, including the cheapest and the most popular among them. Sun Life Capital Management (Canada) Inc. (“SLC”) is the sub-advisor of the core plus bond fund. These funds employ a strategy where asset allocation becomes more conservative as the target-date approaches. 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