The SEC Investment Advisory Committee has asked for additional comments regarding standardized risk-based glide path illustrations for target-date funds.

Investors don't understand the glide paths of their target-date funds. That problem was highlighted during the financial crisis of 2008 when many people lost up to 40 percent of their retirement accounts because they were invested in target-date funds.

Many of those who suffered losses were invested in 2010 target-date funds, so their investment in risky equities should have been lower than their investment in bonds, but that was not the case.

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