Target-date funds have become a popular way to save for retirement because they are such a simple idea that they qualify as a default investment for employer retirement plans such as 401(k)s. They have advantages, but they also have risk. The big risk is that your risk and return profile is not the same as… [Read More]
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Tag: saving for retirement
Felix Salmon, Thomas Friedman, and 401(k) plans
Last week, Thomas Friedman wrote a breathy column for the New York Times about how it’s a 401(k) world. The idea being that just as we have responsibility for our own retirement funds – which is good for some people – we have responsibility for more of our careers – which is also good for… [Read More]
Your 401(k) is not free money
I recently did a profile of pension reform in the state of Rhode Island for InvestHedge magazine. The treasurer of Rhode Island, Gina Raimondo, was in Chicago to talk about the reform process, and she said that it included a defined contribution plan that was similar to a 401(k) plan, but with one huge difference:… [Read More]