SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Stephen C. Bach CFP®
Financial Advisor
7:12 Financial LLC
309 Henry Lane
Wallingford, PA 19086
610-892-1718 (Phone/Fax/Text)
712financial@lincolninvestment.com
September/October 2022
"On Target" for Retirement
Your employer’s retirement plan may include an option to contribute to a target date fund.* Target date funds feature an investment mix that becomes more conservative over time, reducing risk as retirement gets closer.
How They Work
You invest by choosing a fund with a target year that’s closest to the year you expect to retire. The gradual shift to more conservative investments, or “glide path,” can vary significantly from fund to fund. Some funds take an investor up to retirement, after which the fund’s asset allocation never changes; other funds continue through the target year and may not reach their most conservative allocation until the investor is past retirement age. Before you invest, determine whether the fund’s glide path is appropriate for your circumstances, since it will likely affect the fund’s risk and performance.What’s in Them?
Target date funds often hold other mutual funds in their portfolios, although they may also invest directly in individual stocks and bonds. Benefits of investing in the fund include automatic rebalancing and a diversified portfolio.Target date funds are designed to be stand-alone investments. If you decide to add other investments to your portfolio, make sure the overall asset allocation doesn’t present more risk than you’re comfortable taking.
Fund Selection
In addition to choosing a fund that reflects your anticipated retirement year, consider the fund’s investment strategies and your own risk tolerance. While target date funds are designed to help you achieve your goals, contributions, and the fund’s performance, and other sources of retirement income will be important factors.As with any investment, check the fund’s fees and expenses, and talk with your financial professional before you invest.
*Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. Contact the issuing firm to obtain a prospectus which should be read carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Advisory Services offered through Capital Analysts, or Lincoln Investment, Registered Investment Advisers. Securities offered through Lincoln Investment, Broker/Dealer and Member FINRA/SIPC. www.lincolninvestment.com
7:12 Financial LLC and the above firms are independent and non-affiliated. Lincoln Investment is the provider of 403(b)/457 plans sponsored by employers and your advisor represents Lincoln Investment when offering these plans.
7:12 Financial LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.