Mixed Target-Date Fund Investors: Is There a Method to the Madness?

Target-date funds have become a staple in 401(k) investing and are designed to simplify investing for participants in defined contribution (DC) plans. However, an estimated 10 million participants are combining target-date funds with other plan investment options, becoming what are called mixed target-date fund investors. This paper explores the drawbacks of mixing target-date funds and alternative strategies for mixed-target date fund investors.

In this paper, you’ll learn:
  • Which types of investors are more susceptible to mixing target-date funds with other plan investment options
  • How mixed-target date fund investors allocate their portfolios across target-date and traditional funds
  • Other solutions, such as advice or managed accounts, that are available to participants interested in mixing retirement plan investments

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