Some Financial Experts Think Target Date Funds Are the Way to Go for Retirement Savings. But Is That the Right Choice for You?
It's an unfortunate but known fact that many Americans are nearing retirement without adequate savings. Recent data from Northwestern Mutual shows that the average Gen Xer has a savings balance of $108,600, while the typical baby boomer has $120,300. These aren't particularly large numbers, and savers in both age groups may have limited time to catch up on building nest eggs.
One potential barrier to building retirement savings may be that some people find the idea of investing their money daunting. And to that end, many 401(k) plans offer a reasonable solution -- the target date fund.
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Source Fool.com
