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Christopher R. Hibbard, ChFC®, CRPC®, CFS®

Vice President, Wealth Management

 

Teachers Investment Services

Located at Teachers Federal Credit Union

5439 Sunrise Highway

Holbrook, NY 11741

 

Phone:  631-698-7000 Ext. 6020

 

Email: christopher.hibbard@lpl.com

 

CRPC conferred by College for Financial Planning.

January/February 2025

Target Your Investments

Success hitting target as a business assistance concept with the help of a guide as a symbol for goal achievement management and aim to hit the bulls eye as a dart assured to go straight to center.

Most Americans have better things to do other than study the markets. That is why target-date funds continue to be so popular. Also known as age-based, lifecycle and target-risk funds, target-date funds are designed to follow an investing path that changes when risk tolerance and time horizons change.


Popular Choice
According to a 2024 report published by the Employee Benefit Research Institute (EBRI), 88 percent of 401(k) plan participants have access to target-date funds*, and 68% of 401(k) plan participants in the EBRI database invest in them.


Pros and Cons
In a world where time is a commodity, target-risk funds do the work for investors. These funds are typically identified by the target retirement year. For example, a 2030 fund is for near-retirees, a 2065 fund is for younger investors, and there are a host of options in between.


Generally, they start with a balanced portfolio that may include stock and bond mutual funds, and that mix becomes more conservative as the target date nears. Target funds rebalance automatically, which is another convenient feature. Bear in mind that the principal value in a target date fund is not guaranteed at any time, including at the target date.


While this automatic approach to retirement investing has its advantages, it may not be right for every investor. If you plan to retire much earlier or later than the normal retirement age, which is currently 67 for most workers, the fund's asset allocation may not fit your time horizon.


Another potential disadvantage is that you still need to integrate target funds with other retirement investments to ensure you remain on track. Your financial professional can tell you more.


* Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. Contact the issuing firm to obtain a prospectus, which should be read carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won't guarantee future results. An investment in mutual funds may result in the loss of principal.

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Christopher Hibbard is a financial advisor with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Teachers Federal Credit Union (TFCU) and Teachers Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Teachers Investment Services, and may also be employees of TFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, TFCU or Teachers Investment Services. Securities and insurance offered through LPL or its affiliates are:

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