The author of this article has an interesting take on target date funds. I’m not a big fan of these funds because they are a “one-size fits all” approach to defining the appropriate level and type of diversification for investors. The best portfolio is based on a diversification allocation that is designed specifically for you – and which chooses the investments most appropriate for you.
Let me know what you think of the article.
Lily Tomlin, comedienne, actress and writer/producer once suggested something about target date funds – although she wasn’t speaking about them directly; but she very well could have – saying, “Don’t be afraid of missing opportunities. Behind every failure is an opportunity somebody wishes they had missed.” Target date funds are a basket of missed opportunities wrapped in a potential failure, gift wrapped with hope.