If you've ever enrolled in a 401k plan, you probably realized that choosing a dessert from Cheesecake Factory's extensive menu would have been easier than choosing from your 401k investment options. 

As your eyes glazed over while scrolling through the list of available funds, you probably encountered something called "Target Date Funds" (or "TDFs"). 

These funds have an asset allocation (split between stocks and bonds) that changes over time as you approach your target retirement year. The closer you get to that date, the less equity (risk) exposure the fund contains. 

These funds are designed for people who simply want to get their money invested without having to think about it again. And while these investment options provide an easy solution to those with limited investment knowledge or interest, they often aren't the optimal solution.

How to Think About Asset Allocation blog post

Find the blog version of this podcast at LuminaryWealth.com
Or check out the video version of this podcast on our YouTube channel
Follow us on Instagram @luminary.wealth
Let's connect on LinkedIn

Disclaimer:
This podcast is not intended to provide financial or tax advice. The information, services and other content provided on and through this podcast, including information that may be provided in the show notes (directly or via linking to third-party sites), are provided for informational purposes only. Please consult with your tax, investment or other financial professional regarding your personal financial situation.