[Subscribe to Daily Digest] |
[Main General Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
50 years with no investor input? Target Year Funds? Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Wed, 13 Jul 2011 03:49:35 In Reply to: Re: investing ideas, Dean, Tue, 12 Jul 2011 15:45:23 Members do not see ads below this line. - Help Keep This Site Online - Signup |
There are investment vehicles called Target Year Funds. All of the big investment firms/managers seem to have them and they are usually available for the decade and half-decade years, i.e. 2015, 2020, 2025, etc. The idea is that the investor will select a year close to when they plan to retire, the fund manager invests more aggressively when the target year is far off to maximize growth, then gradually moves to safe income producing investments as the target year rapidly approaches.
Unfortunately, there is no requirement/guarantee that the manager invest cautiously during down markets that occur long before the maturity year. Ouch! I personally found out this the hard way.
Since I hope to live a long time after retirement I have funds with target year maturities of 2020, 2030, and 2040. The money I won't need until my 80s can continue to grow faster while I am in my 60s. I am also watching these funds closely now to prevent a recurrence of what happened in 2007-2009 by moving the balances to strictly low risk income producing investments if necessary.
posted by 198.208.25...
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.