Target Dates

... As in funds.

Investor understanding of target-date funds is high-including what the "date" in a target-date fund's name actually means and how the asset-allocation strategy for a target-date fund becomes more conservative over time, according to a survey released today by Global investment management firm AllianceBernstein.

The bad news: Slightly over 50% of that same survey group mistakenly believe that using target-date funds will guarantee that their retirement income needs will be met. ...

In TAG 401(k) meetings, I recommend the Vanguard Target Funds for people who want to deal with their 401(k) investments as little as possible.

I also recommend the Vanguard funds because they are incredibly inexpensive: 17 to 19 basis points.

Nice.

But my advice about Target Funds? Ignore the years attached to them and concentrate on the asset allocations. You want mostly bonds? Then opt for the VG Target Retirement Income Fund, with a 70% bond, 30% stock allocation. If a 50%/50% stock-bond split is more your style, then Vanguard Target Retirement 2010 is what you want.

And so on.

But I would definitely agree with the observations up top. Don't expect money you tuck away into a 401(k) Target fund to cover all living expenses in your Seasoned Citizen years. You'll need investment income, Social Security cash flow, and perhaps something from a monthly pension or annuity to round things out.

Upcoming TAG 401(k) Enrollment Meetings

Tues. Nov. 8th -- Disney Hat Bldng -- 10 A.M., 1300 confrnce rm

Tues. Nov. 8th -- Disney TVA Sonora Bldg -- 2 P.M., Rm 2066

Wed. Nov. 9th -- Bento Box -- 10 A.M., break room

Wed. Nov. 9th -- Fox TV Animation -- 2 P.M., main cnfrnce rm

Thurs. Nov. 10th -- Sony Pctr Anim -- 10 A.M., main cnfrnce rm

Thurs. Nov. 10th -- Nickldn -- 2 P.M., main cnfrnce rm