Why target date funds may work for you

Target date funds generally adjust over time

When retirement is still a long way off, it may make sense to choose an investment strategy with a higher concentration in stocks since investing over a longer time horizon may allow investments to weather the market’s ups and downs. As retirement nears, investors commonly adjust their portfolio to include a higher concentration of lower-risk investment options (compared to stocks).

Knowing when and how to make these adjustments can be a challenge. With target date funds, the investment portfolios are automatically adjusted over time, both before and after retirement.

As the hypothetical chart below shows, the target date funds allocated are actively managed to reduce risk and equity exposures over time.

Target date funds

Target date funds are generally professional investment solutions designed for people who want a single diversified investment that automatically adjusts over time. Each is a mutual fund composed of other mutual funds, offering:

• One-step portfolios. Target date funds are a mix of many different investments.
• Professional diversification* that may help reduce the impact of the market’s ups and downs on your account.
• Stock exposure that has the potential to help your retirement account outpace inflation and maintain its buying power throughout retirement.
• Automatic rebalancing among stocks and bonds that can help the funds’ allocations stay on track.

*Diversification cannot assure a profit or protect against loss in a declining market.

Investing involves risk, including the possible loss of principal. Investment values will fluctuate and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than their original cost.

The principal value of an investment in a target date fund is not guaranteed at any time including at or after the target date maturity date. The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date.

Contact a financial professional to enroll today

Mark Roberts
Financial Advisor
410 Amherst Street, Suite 310,
Nashua, NH 03063
O: 603-594-8340
C: 207-747-8966
mark.roberts@corebridgefinancial.com

Maura Esten
Financial Advisor
410 Amherst Street, Suite 310,
Nashua, NH 03063
O: 603-594-8340
C: 207-272-7957
maura.esten@corebridgefinancial.com