Baby Boomers Face 40% Risk of Loss in Most Target Date Funds

There are safer TDFs with about half the risk of losing money near retirement, but they are not popular — yet. These safer TDFs, beyond the Federal Thrift Savings Plan, include the Dimensional Fund Advisors Target Date Retirement Income funds, the low-risk flexPATH target date funds, and strategy represented by the SMART target date fund index on Morningstar Direct.

By Ron Surz