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It appears that Target Funds are becoming more common for employer sponsored plans, and these are billed as a safe way to prepare for retirement.

For people who plan to retire over the five to fifteen years, those plans will be trending away from stocks and towards bonds - becoming increasingly bond heavy.

In an era where interest rates seem poised to go up significantly (with the end of quantitative easing, etc.), is this wise, or even safe?

If not (assuming that they can move out of the target funds), how should someone in this position invest?

Chris W. Rea
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BruceNewEngland
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1 Answers1

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It's a what-if? sort of question. What if rates stay down or trend only slightly higher, despite no QE? look at other countries response to tepid economies. My experience as professional advisor (25 yrs) tells me the future is unknowable and diversity is good. Make alternative choices- they all won't work wonderfully, but some will.

michael
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