Target Date Funds

Our take on the investing, financial, & economic themes of the day

The Biggest Problem with 401(k) Plans is the Do-it-Yourself Fund Picking Model

There’s lots of discussion in the financial press about excessive 401(k) fees, which we at O’Brien Greene like to see, since our professionally managed 401(k) plans are much less costly to retirement investors than the conventional plan.  The new attention to fees helps plan ... read more...

Rethinking Retirement Asset Allocation

28 January, 2014 by Ben O'Brien in Commentary
In some recent posts on target date funds we questioned the wisdom of an automatic “glide path” that continues to increase the amount of fixed income in a portfolio over time even after an investor reaches retirement. We prefer a more dynamic, customized asset allocation. A recent recent Wall ... read more...

Another Problem with Target Date Funds and “Automated” Investing

3 September, 2013 by Matthew O'Brien, Ph.D. in Commentary
In an earlier comment we noted a number of drawbacks with the investing strategy behind target date retirement funds.  I want to highlight an additional problem: many different target date funds with the same target date have drastically different asset allocations, while many funds with ... read more...

Target Date Funds Miss the Mark

17 June, 2013 by Ben O'Brien in Commentary
A recent innovation in retirement investing is the target date fund. As financial innovations go, this one is better than most, but we have some reservations about it. Target date funds were designed so investors could put their savings into one low-cost fund and forget about it until ... read more...