Data shows 9 out of 10 sponsors use TDFs as their QDIA. Are all those sponsors, and the tens of millions of savers invested in the funds, missing the boat? (Photo: Shutterstock)
Target-date funds have revolutionized the 401(k) market over the past decade. With well more than $1 trillion held in mutual funds, and hundreds of billions more in collective investment trusts, TDFs are by far the favored qualified default investment alternative of plan sponsors large and small. Data from various recordkeepers shows nine out of 10 sponsors use TDFs as their QDIA.
But are all those sponsors, and the tens of millions of savers invested in the funds, missing the boat?
Jason Shapiro, director, investments, at Willis Towers Watson, thinks sponsors and savers have better options than traditional TDFs. And he says those alternatives are available to all, not just large and mega sponsors.
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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.
