Episode 40: Target Date Funds: Are They the Right Choice?

by Financial Design Studio, Inc. / April 1, 2024

Sometimes target date funds, or age based funds, are your only choice. Where should they fit into your investment portfolio strategy? In this episode, we explain what these are, their pros and cons, and when the might be an important piece of your strategy.

Take a listen right here, or head over to your favorite steaming platform!

Key Moments: Target Date Funds

2:08 Where will you see target date funds?

5:01 What is a target date fund (aka Age Based Fund)?

10:22 What are the Pros?

12:16 What are the cons?

16:13 How do they invest for retirement?

21:07 Example: bond performance

26:47 When do you need more investment flexibility?

34:37 Closing thoughts

Related Links

Read Rob’s article “Does Investment Diversification Matter Anymore?

Learn more about asset allocation in episode 39, “Investing Across Your Lifetime.

Watch our video, “Target Date Funds: Pros and Cons.

Stay Connected!

If you want to hear even more episodes, like this one, be sure to subscribe to the Behind the Designs podcast on your favorite streaming platform! The Behind the Designs podcast shares with you an inside perspective at how financial advisors think about money. We’ll see you in the next episode.

Credits for Episode 40

Executive Producer : Anna Lewis

Host : Michelle Smalenberger, CFP®

Guest : Robert Stoll, CFA, CFP®

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