You don’t want to work for the rest of your life, do you?
Let’s set the record straight…
Target-Date Funds are going to kill your retirement.
It’s a bold claim I’m making, but here’s why I believe it.
If you’ve heard of them, then they might have been presented to you as a great choice.
If you haven’t heard of them, let me give you a quick rundown.
Target-Date Funds are funds that are designed to pay out at a certain date. Early on, the assets in the fund are risky, but as time goes on they become more conservative.
I get why people like the idea.
It seems to make a lot of sense.
You put your money into this fund and when you retire, you’ll have a little pot of gold just waiting for you, right?
Call me cynical, but that is a little naive.
Let’s talk about baby boomers who were told to buy and hold stocks.
Unfortunately, that didn’t work out.
If you haven’t heard, more than 74% of Baby Boomers didn’t get what they wanted. Some are worried they won’t have enough to retire with.
Others have already found they don’t have enough.
The likelihood of social security being around when I retire is very unlikely.
With all this uncertainty, how could these Target-Date Funds ever deliver on this promise?
Let’s go into my three big issues with these Target-Date Funds.
(NOTE: Worried about overpaying in fee’s? Download a copy of this free report “3 Ways Mutual Funds Legally Steal Your Money & How To Stop Them” by clicking here)
Usually when we pay for something, we receive something back in value. When it comes to investing there is no guarantee, but if a coach of a sports team doesn’t win they are replaced quickly.
That’s not the way it works for some fund managers.
Around 89% underperform the S&P 500 every year according to S&P Dow Jones Indices scorecard.
But they never get fired!
Now, I’m not here calling these people frauds. I just think there needs to be more accountability. I just want to see some light shed on the topic.
This is one the reasons I left the industry…
I wanted to empower people like you to be able to take back control of their financial future.
Unfortunately, I don’t believe Target-Date Funds are going to be your knight and shinning armor.
The fees on these Target-Date Funds range from about 1-2% per year. The fees they are paid are inexcusable for never producing meaningful returns.
Now, 1-2% might not sound like a lot, but you’re not looking at the big picture. 1-2% compounded over 10 years with your overall returns, we are talking about many of thousands lost and put into the pockets of these firms and managers.
The fact that these are long-term funds makes things even worse: the high fees take most of the profits away before you have a chance to cash out.
No wonder so many fund managers strike it rich, right?
I actually talk about this a bit in my report, 3 Ways Mutual Funds Steal Your Money. I also show you a way on how you can quickly put more money into your pocket by saving on these fees and get a better returns.
Ask most people what’s going on with their Target-Date Funds and you’ll discover a simple, startling truth: they don’t know…
When does hoping and praying every work out?
That is putting a lot of trust into these people, hoping they deliver on their promise.
Worse yet, it’s nearly impossible to figure out!
Even Morningstar, an investment research firm with both clout and expert researchers, had difficulty figuring out what was going on with these funds.
While this might sound great because it’s complicated, they do this so they make it seem like you can’t do it.
I know my knowledge in this field is going to be greater than most, but you don’t have to be an expert to be successful at managing your money.
The average person isn’t going to know these answers or dive that far into it, but the truth is, what you don’t know can hurt you.
Possibly the biggest problem with Target-Date Funds is what they claim as their biggest benefit: all the trading and investing is done based on when you need the money by.
They’re not paying attention to whether the underlying is high or low. What I mean is that there really isn’t a method to their madness.
The stock market changes constantly, because our lives change constantly.
How could someone know what the world is going to look like 20 years from now?
Think back to 20 years ago…
We were in a bull market until the dot com bubble in the start of the new century, followed by the financial meltdown in 2008.
Could you have predicted then what your life would be like now?
I hear yeah!
It’s a lot to take in.
You have me telling you this, you read things in the Wall Street Journal, hear things on CNBC, and they are all different.
Everyone has an opinion and a motive.
I’ll tell you what though… this stuff fires me up!
Like I said earlier, this is the stuff that made me walk away from the financial industry. I wanted to help investors like you take back control and be more educated and aware of your choices.
If this fires you up… high five!
When it comes to my future and money, I want full control of it. Win or lose, at least I called the shots!
Taking control of your investment decisions doesn’t mean you have to be some day trader with six screens. There are very passive ways that allow you to enjoy your life, work, and be able to be successful at managing your money as well.
There’s no reason why you can these days because you can do it from your phone, iPad or laptop these days.
The first step is staying away from the Target-Date Funds and moving away from mutual funds in general.
In the free report 3 Ways Mutual Funds Steal Your Money, I teach you how to quickly and easily save thousands in fees and how you can easily manage your own money.
Is your financial planner or 401k administrator trying to put you into these Target-Date Funds?
I’d love to hear your thoughts and opinions on what I shared with you above.
I’d also love to hear your thoughts on the report I created called: 3 Ways Mutual Funds Steal Your Money (Click here to download it for free).