Target date fund
I am a retired cook county employee. I have a cook county deferred compensation plan. My fidelity contrafund k6, vanguard mid-cap index fund – institutional shares and vanguard small cap index fund. The cool are moving these funds into the target date closest to age 65. What type of funds should I transfer too. Thanks.
Terry Says
I don’t know all the options you have, or how that target date fund is invested. But it’s an interesting question. Why don’t you write back and give me a link to the alternatives.
Target date funds still have a lot of exposure to stocks, because over 20-year periods, stocks outperform inflati0n historically. I’d be interested to know if there is a still more conservative options –such as a stable value fund.
If so, and if you are within 5 years of retirement, I would think a 25% allocation to the stable value fund option would let you sleep better at night.
