Do you own a Target Date Fund? If you are like 68% of 401(k) investors, you do. But are you aware of the hidden costs?
The average TDF charges fees of 0.66%—but some charge as much as 1.89%! Over time, these fees can quietly drain thousands from your retirement.
Since 2019, the average TDF has underperformed its Glidepath benchmark by 0.76% per year due to fees and poor Management. That may not sound like much, but over decades, it can have a devastating effect on your savings.
Over 30 years, even a small 0.76% underperformance could slash your retirement nest egg by over 20%! Imagine working hard for years only to find out your TDF didn’t grow as you expected.
Since September 2019, the top-performing 2050 TDFs outperformed its Glidepath benchmark by $5,012 for every $100,000 invested. In contrast, the worst-performing 2050 TDF underperformed its Glidepath benchmark by $16,364 for every $100,000 invested. The difference between the two 2050 TDF’s performances is a staggering $21,376! If you are not in the right fund, you could be leaving tens of thousands on the table.
GlidePath
FINANCIAL
Bringing Transparency to Target Date Funds
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Do you own a Target Date Fund? If you are like 68% of 401(k) investors, you do. But are you aware of the hidden costs?
The average TDF charges fees of 0.66%—but some charge as much as 1.89%! Over time, these fees can quietly drain thousands from your retirement.
Since 2019, the average TDF has underperformed its Glidepath benchmark by 0.76% per year due to fees and poor Management. That may not sound like much, but over decades, it can have a devastating effect on your savings.
Over 30 years, even a small 0.76% underperformance could slash your retirement nest egg by over 20%! Imagine working hard for years only to find out your TDF didn’t grow as you expected.
Since September 2019, the top-performing 2050 TDFs outperformed its Glidepath benchmark by $5,012 for every $100,000 invested. In contrast, the worst-performing 2050 TDF underperformed its Glidepath benchmark by $16,364 for every $100,000 invested. The difference between the two 2050 TDF’s performances is a staggering $21,376! If you are not in the right fund, you could be leaving tens of thousands on the table.
