The Target Date Trap: A Warning for Near Retirees The assets in target date funds have surged to a record $4. 8 trillion, according to Morningstar analyst Mahi Roy's research.
However, concerns are being raised about the suitability of these funds for near retirees. Target date funds offer a simple solution for younger workers by automatically rebalancing and diversifying investments.
As Jeff Judge, a financial adviser with Chesapeake Financial Planners, notes, "Most people never rebalance, never check their allocation, and would be far worse off doing nothing.