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But I also fancy the simplicity of target-date retirement funds which increasingly 401 (k) plans are offering, too.
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Others, such as target-date retirement funds and 529 college-savings-plan funds, are managed with a specific date in mind and grow more conservative as that date approaches.
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Rowe, which operates one of the largest no-load mutual fund complexes in the U.S. Some 75% of its assets under management is invested in equities and 25% in target-date retirement funds.
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The classic example is target-date funds for retirement.
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One response to such inertia has been the spread of target-date funds, which rebalance automatically as the participant nears retirement age, and target-risk funds, which are managed and rebalanced according to a saver's risk tolerance, as opposed to his age.
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The shortcut to asset allocation is to buy so-called target-date funds, which gradually turn to a more-conservative mix of assets as shareholders approach retirement.
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One reason for the growth: They are among the few permissible "default options" in many retirement plans, so investors may have their savings in target-date funds without actively choosing them.
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Retirement Series and Vanguard Target Retirement funds were the top two funds in Morningstar's latest ranking of target-date funds.
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