Target Date Fund Selection: The Importance of Choosing a Target Date Strategy

Nobody knows what the future holds for the stock market and for the economy. Both may strengthen in the short-term, or they may be in for a bumpy ride. A well diversified target date fund (TDF), that weathers ups and downs, can make all the difference for plan participants in achieving their retirement goals. However not just any TDF will do, it’s essential to be thoughtful about the TDF’s level of equity exposure during the crucial years leading up to retirement. This means selecting funds that master the balancing act between continuing to grow assets and providing protection from a potential drawdown.

Download this white paper now for tips on how to select TDFs that manage participant risk in a variety of market conditions and are more than just a target year. This includes choosing a TDF that: 

  • Is designed based on real-world participant behavior
  • Focuses on participant outcomes
  • Has a glide path with an appropriate level of risk at retirement

Selecting the right TDF family requires research and understanding on the part of the plan sponsor and their advisor. Take steps now to make sure you make the right decisions together.

 

J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.



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