I’m a conservative investor. How should I pick a target date fund?
An individual investor may have more or less tolerance for the investment risk than the investor for whom a fund with a particular target date is designed. Many fund sponsors provide useful information to investors or plan administrators regarding the current asset allocation of each target date fund. If an investor feels that the asset allocation mix associated with the investor’s target date involves more risk than he or she wants to assume, the investor can choose a fund with a target date that will occur prior to the investor’s expected retirement date. An investor who is less risk-averse than the fund’s target investor might choose a fund with a target date that will occur after the investor’s expected retirement date.
