Sleep at the Wheel

Good Afternoon,

Most of us have made New Years Resolutions that involve getting ourselves in shape physically, mentally, emotionally, or financially. When it comes to the financial aspect we tend to think about our spending but neglect our retirement savings, which gets overlooked. Reuters published an article about Target Date Funds that is worth reading since these funds are usually the default options for company/government retirement plans. This article dives deep into some of the details but a couple of points worth noting are:

1. Not all funds are created the same

2. Time to retirement matters most when being aggressive or conservative

3. These funds aren't immune to losses

While most of us, set it and forget it when it comes to our retirement the composition of a target date fund matters. Without knowing it you could be exposed to higher volatility, lower fees, or global risk based on the composure. These vehicles are great ways to start saving but based on your changes in life these investments might not be appropriate because your goals/situation changes faster than the fund composition. 

If your body is getting a tune-up, give your finances that same attention.

#financialliteracy #reuters #targetdatefunds #investments #retirementplanning #etfs #mutualfunds #stocks #bonds #investing #economics #financialfloyd #phillyfinance 

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