Edelman Financial President Testifies at Joint Hearing on Target Date Funds
Edelman Financial President, Ed Moore testified on June 18 about the dangers posed to investors by target date funds.
"The demand for target date funds stems from a lack of consumer investment knowledge. The typical consumer is increasingly responsible for funding his or her own retirement and is in dire need of guidance. Just 6% of workers were covered only by a defined benefit retirement plan in 2007, according to the Center for Retirement Research at Boston College, compared to 21% in 1992. The remaining workers with defined contribution plans are responsible for making their own investment decisions — a daunting task. Yet 69% of workers lack investment knowledge, according to a 2006 survey by John Hancock, and 67% say their fear of market volatility prevents them from managing their 401(k) properly."
Read full letter »
"Our experience has taught us that target date funds pose specific dangers to investors. I would like to describe these problems and offer you two simple solutions that can protect America’s investors from these problems."
Read full testimony »
Rescue Your Money, written by award-winning financial advisor Ric Edelman, is your personal investment recovery plan.
