Although there are many participants enrolled in defined contribution plans today that combine target-date funds with other plan investments, it's best to be cautious when mixing target-date funds with the rest of a portfolio, according to a new Morningstar study.
"An investor who would like a more aggressive allocation would generally be better off moving along the target-date fund glide path by selecting a vintage (or target-date year) with a higher risk level than mixing the target-date fund with equity (or bond) funds from the core menu," David Blanchett, head of retirement research at the firm, said in a new report, "Mixed Target-Date Fund Investors: Is There a Method to the Madness?"
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Jeff Berman
Jeff joined the ThinkAdvisor team as a staff reporter in July 2019. Before joining ThinkAdvisor, he was a freelance reporter for five years, covering mainly technology, business, media and entertainment news for publications including The Miami Herald, Newsday, TheStreet.com, Long Island Press and multiple American City Business Journals websites. He also reported for several consumer electronics publications and was a technology reporter for publications of the Media & Entertainment Services Alliance. Prior to that, he worked as a reporter and editor for Consumer Electronics Daily and other Warren Communications News publications for 15 years. He graduated with an MA in journalism from New York University.
