WHY YOU MIGHT WANT TO SAY NO TO TARGET DATE FUNDS

Posted on by Joseph M. Brennan Jr.

As an investor, I’m not a fan of Target Date Funds. Why? Well, the long-term average gain of the S&P 500 is about10% (including dividends) and this market index tends to go up about 90% of the time. So, everyone who has a patient disposition and the ability to buy a low-cost S&P 500 index fund or ETF, ride out the ups and downs, and stay invested over the longer term can expect to capture this 10% gain if this long-term historical trend continues.

Those who invest in Target Date Funds only capture a percentage of these gains because some set percentage of Target Date Funds are invested in conservative investments – which naturally return much less than the 10% average gain of the S&P 500.

Given the above, my recommendation is if you are invested in Target Date Funds, keep it as is for now. But once a substantial drop in the S&P 500 happens, be prepared to become 100% lnvested in the stock market if you are a high-risk investor (most people should be high-risk or medium-risk investors until they start approaching the halfway point of reaching their long-term financial goal). If you don’t know which risk category you fall into, please scroll down to the bottom of this post: ANOTHER 1ST EXECUTION OF MARKET-BASED BUY STRATEGY FOR 2025 | BRIGHTER DAYS LIFE COACHING®

I hope this will be helpful to you and if you have any questions you know who to ask.

Here is some additional finance and investing related information which might be helpful to some of you:

  1. HOW TO CREATE A BRIGHTER FINANCIAL FUTURE FOR YEARS AND DECADES TO COME: https://brighterdayslifecoaching.com/how-to-create-a-brighter-financial-future-for-years-and-de cades-to-come/
  2. HOW TO INVEST WELL AND CREATE A BRIGHTER FUTURE WITH MINIMAL EFFORT: https://brighterdayslifecoaching.com/how-to-invest-well-and-create-a-brighter-future-with-minimal-effort/
  3. MY “INVEST LIKE A PRO IN 10 MINUTES A DAY” SERIES OF BOOKS: https://brighterdayslifecoaching.com/published-books-and-life-coaching-services/
  4. THE STOCK MARKET ACTIVITES I ENGAGE IN: https://brighterdayslifecoaching.com/stock-market-activities/

I hope this information will be helpful to you and I wish you much success in creating a brighter financial future for yourself, your loved ones, and those who follow!

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