- It’s important to be aware of the benefits and drawbacks of target-date funds before investing.
- On the plus side, target-date funds simplify investing with a hands-off, unemotional approach to allocation.
- Minuses include a lack of customization and an overwhelming number of fund options.
- Do some research on the investment company, expense ratios and how the target-date fund is rebalanced throughout the years.
Michael Anthony Solari, principal at Solari Financial Planning