Summary of Life-Cycle Funds
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Summary of Life-Cycle Funds
Despite the drawbacks, life-cycle funds have gained popularity for their convenience and (relative) simplicity. Many of us are intimidated by the sheer number of investing options that confront us. Even more are ill-equipped and lack the time to responsibly manage every detail of our own retirement portfolio. While not the perfect solution for everyone, life-cycle funds can at least make retirement planning easy enough to get folks off the sidelines and into the investment game, and that is probably their main advantage.
Practical Ideas I Can Start With Today
- Set a realistic target date for my retirement.
- Find out if my employer’s retirement plan mutual fund company offers life-cycle funds.
- Decide whether I’m ready, willing and able to take the "do it yourself" approach to investing or if the simplicity of the life-cycle approach appeals to me.
- Investigate the composition and expenses involved in any life-cycle fund before settling on one.
What you have learned
- What Are Life-Cycle Funds and How Are They Structured?
- Advantages of Using Life-Cycle Funds
- Disadvantages of Using Life-Cycle Funds
