Managed accounts have their place for some 401(k) investors, but no one should expect them to eclipse the role target-date funds play as the primary qualified default investment alternative in defined contribution plans, according to recent analysis by Cerulli Associates.

The conclusion comes as more critics of TDFs have emerged over the past two years.

Some have argued, too, TDFs' many glide paths carry too much equity risk as retirement nears. Others say they lack the ability to tailor specific strategies for investors that may have different levels of risk tolerance, or needed returns.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.