Protecting your Retirement Assets from the Next Black Swan Event

Target Date Funds now dominate the asset flows in 401k and 403b plans bringing in more than 60% of all new contributions. The click it and forget it mentality has made Target Date Funds an easy, user friendly investment vehicle for most retirement clients. But, do plan sponsors and more importantly, plan participants, really understand what they are investing in? All TDFs are not created equally. During the 2008 financial crisis, as well as the current Coronavirus dislocation, the difference in returns and volatility among the top TDF offerings was staggering.