Hello. This is Clark Kendall with Kendall Capital Management in the Greater Washington, DC area. Today’s investment nugget is target date funds.
Target date funds determine your asset allocation based upon one factor and one factor alone, your age. Can you imagine the Class of 1975, walking across the graduation stage? They received their diploma and their asset allocation. The asset allocation for the Class of ’79 is 60% stocks, 30% bonds, 10% international. Tommy who works for the federal government with $100,000 in his retirement account is 60% stocks, 30% bonds, 10% international.
Right behind Tommy at the graduation line was Gigi. Gigi went to medical school, became a brain surgeon, earns a million dollars a year. Her asset allocation 60% stocks, 30% bonds, 10% international. Crazy, isn’t it, between Gigi and Tommy?
There is so much more that goes into asset allocation than simply your age. If you’d like to learn more about these and other investment strategies, please feel free to contact me at 301-838-9110 or visit kendallcapital.com. Thank you. Have a great day.