Christopher Carosa, CTFA posted an update in the group Investments 9 years, 2 months ago
Why do you think Target Risk Funds contain less fiduciary liability concerns for 401k plan sponsors than Target Date Funds? Target Date Funds have exploded in terms of popularity. It’s not that they’re proven in any sense of the word. In fact, the economic crash of 2008/2009 exposed their true nature and the potential liability they pose. There’s been plenty written about these liabilities, yet, they’re still the preferred QDIA. When will the chickens finally come home to roost on TDFs and why are Target Risk (a.k.a. “Lifestyle”) Funds a better (in terms of reduced fiduciary liability) choice for QDIAs?
[bpfb_link url=’http://www.benefitspro.com/2015/05/13/why-financial-pros-prefer-target-risk-funds’ title=’Why financial pros prefer target risk funds | BenefitsPro’ image=”]It’s a matter of knowing what’s inside that counts most.[/bpfb_link]