Those who are shunning target-date funds say they are doing it for a range of reasons. Others decide the one-size-fits all approach that target-date funds provide no longer works after they reach certain financial and life milestones. This spring, Brooke Hurley, 24, moved all of her 401(k) money out of target-date funds and into low-cost stock index funds. Philip Hamilton switched from a retirement plan with mostly target-date funds to one that includes index funds. “I have begun talking to many of my clients about moving out of target-date funds,” said Raman Singh, an adviser in Phoenix.

Source: Wall Street Journal August 04, 2024 13:11 UTC