Target-Date Funds 101: What Business Owners Should Know About Their Plan's Default Option
All Insights
Retirement 1 min read

Target-Date Funds 101: What Business Owners Should Know About Their Plan's Default Option

For many 401(k) plans, target-date funds are central to the default investment discussion. They are often organized around an expected retirement year and may be used individually or as part of a QDIA. For a business owner, the key is not to evaluate a target-date series based on a recent market result alone. It is to understand how the series works and how the committee oversees it within the plan.

Your plan’s default investment can have a lasting impact on employees’ retirement outcomes. Here’s what business owners and plan sponsors should know about target-date funds—and why reviewing them regularly matters.

Ready to take action?

Let's talk about your financial future.

A local Memphis advisor is ready to listen. No pressure, no obligation.

Schedule a Consultation