Understanding Retirement Dated Funds

Retirement dated funds are mutual funds that generally grow more conservative as you get closer to your target retirement date. Unfortunately, that doesn’t mean your money is protected from potential loss if – or when – the stock market drops.

For example, in 2008 you could have purchased a retirement dated fund from a well-known financial firm. The fund was named Retirement 2010, meaning it was best for people who planned to retire in 2010. But in 2008, the fund dropped 27% on the heels of the Great Recession.

Many people who invest in retirement dated funds do so with the misunderstanding that they won’t lose money, especially right before retirement when they need it the most. They also might have too much of their retirement money tied up in those funds, putting their future income at risk.

Discover the better side of retirement planning.

At Carlson Financial, we can help you choose the right investments to meet your needs and also potentially protect against future loss. Call us today at 844-CARLSON or CLICK HERE to schedule your complimentary review.