Target date funds 2055 – same target year, different glide paths

Target date funds: Marketing or Finance?

Since Target Date Funds (TDFs) became one of the default investment strategies for the 401(k) defined contribution (DC) beneficiaries, they have developed rapidly. Usually they are structured according to the principle “young people should invest more in equities”. Is this really a good recommendation for DC beneficiaries to manage their investment risk? The present paper relies on dynamic asse...

Different cancers, same target?

Use of target-date funds in 401(k) plans, 2007.

WHAT THEY ARE: Target-date funds (also called "life-cycle" funds) are a type of mutual fund that automatically rebalances its asset allocation following a predetermined pattern over time. They typically rebalance to more conservative and income-producing assets as the participant's target date of retirement approaches. WHY THEY'RE IMPORTANT AND GROWING: Of the 401(k) plan participants in the EB...

Target Date Funds : What ’ S under the Hood ?

In today’s 401(k) world, individuals must choose how to invest their retirement savings. Yet evidence shows that they often make poor choices on their own. Target date funds (TDFs) were designed as a potential solution. TDFs provide a pre-set mix of stocks and bonds, which shifts away from stocks and toward bonds as individuals age. These funds are often used as the default option for 401(k)s t...

The Online Target Date Assignment Problem

Many online problems encountered in real-life involve a two-stage decision process: upon arrival of a new request, an irrevocable first-stage decision (the assignment of a specific resource to the request) must be made immediately, while in a second stage process, certain ”subinstances” (that is, the instances of all requests assigned to a particular resource) can be solved to optimality (offli...