Clik here to view.
Nostalgia, Baby Boomers and Target Date Funds
Even though Yogi Bera says, “Nostalgia ain’t what it used be,” there’s a lesson to be learned from 1960s muscle cars—loved by Baby Boomers—that applies to today’s target date funds. In a 7/14/23...
View ArticleClik here to view.
Why a Crash Like 2008 Would Decimate Boomers in TDFs
The next crash might not be as horrific as 2008, but there will be a next crash and it is likely to happen in this decade, a decade that is the Risk Zone for most Baby Boomers. Source: Target Date...
View ArticleManaged Accounts Can’t Work for Defaulted 401(k) Participants
There’s a reason that Managed Accounts (MAs) don’t—and can’t—work as a Qualified Default Investment Alternative (QDIA): Defaulted participants do not want to engage, so MA providers must rely on the...
View ArticleClik here to view.
The Game is Changing for Target Date Funds
In Target-date fund providers struggle to compete, Pensions & Investments reports: “More fund closings, fewer launches as five giant firms maintain grip on market. The target-date fund market is...
View ArticleClik here to view.
Advisors Miss Great Opportunities in Target Date Funds
Investment advisors collect about $5 billion a year in fees related to target date funds while investment managers earn three times that amount with the majority going to the Big 3 oligopoly of...
View ArticleClik here to view.
Target Date Fund Theory and Evidence
TDFs say they follow academic lifetime investment theory, but they are much riskier at the target date than this theory. Plus, the evidence of investor preference is voice-of-client surveys of...
View ArticleClik here to view.
Imminent Crises are Opportunities for Financial Advisors
It is not the strongest of the species that survives, nor the most intelligent, but the most responsive to change. – Charles Darwin, The Origin of Species When written in Chinese, the word ‘crisis’ is...
View ArticleClik here to view.
There’s No Way Out. Deal With It.
Despite the abundance of optimism welcoming 2024, John Mauldin says “There’s No Way Out”—the U.S. economy will crash. He hopes the building crashes around us rather than on top of us, but economic...
View ArticleClik here to view.
Fiduciaries Incite Revenge of the Baby Boomers
The next time target date funds (TDFs) suffer large losses, Baby Boomers won’t care that risk was rewarded until it wasn’t. They’ll be angry that academic theory was not followed because the theory...
View ArticleClik here to view.
Dispelling Cost Myths of MEPs, PEPs and GoPs
In a March 26 article entitled Small Business Retirement Plans: How Firms Perceive Benefits & Costs, the Center for Retirement Research of Boston College reports that: • Only about half of U.S....
View Article
