When is the RIGHT TIME for Target-Date Funds?
Episode description
Target-date funds have $3 trillion dollars in assets. Millions of Americans are enrolled in them, mostly through company 401(k) plans. They have a track record, multiple products, plenty of competition and fees are declining as a result.
In an article titled “In Praise of Target-Date Funds,” one of our favorite WEALTHTRACK guests, Morningstar’s Director of Personal Finance, Christine Benz described them as “...nothing short of the biggest positive development for investors since the index fund.”
That got my attention! So this week we are interviewing one of the best target-date managers in the business. He is Wyatt Lee, who is Head and Co-Manager of T. Rowe Price’s $390 billion Target Date Strategies, the largest group of actively managed target-date products in the U.S.
The firm’s Retirement Series earned a Gold analyst rating from Morningstar, one of only two in the actively managed category, for its stellar performance and high ratings for its process, people, and the parent company.
Lee begins with the basics and defines what a target-date fund does and how the product has evolved since it was first introduced in 1994. It turns out target-date funds can be an effective retirement vehicle for investors at all stages of life and that there are many options available. I learned a great deal from Lee. I hope you will too.
WEALTHTRACK #1834 broadcast on Febuary, 18, 2022