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.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.