Despite being one of the most popular investments in modern 401(k) plans, when it comes to TDFs, most participants apparently remain completely unaware of what they are and how they work.

It's an observation made by a recent LIMRA survey and it suggests that retirement advisors and plan sponsors have plenty of educational opportunities to let participants know how and why TDFs work – especially if those participants already have them as part of their 401(k) portfolio. And as TDFs are expected to become the predominant component in 401(k) investments in the future.

TDFs popular, misunderstoodThe good news, however, is that those consumers who've taken the time to learn about TDFs tend to have a much higher level of confidence in their own retirement future. The general public, not so much.

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