Video Transcript:
As we near retirement, the ability to recoup investment losses becomes critical. Therefore a strategy to reduce risk as you near retirement should be targeted. Target Date Funds, which are usually mutual funds, self-adjust their portfolio based upon a fixed date.
As time passes, exposure to stocks is replaced with an increasing use of bonds. Each fund has a designed Glide path to allocate funds. Think of an airplane coming in for a landing. Most of the flight is high (meaning it has more risk) and as the target date approaches the plane takes a steep glide path to approach the landing.
These funds relieve you the task of frequently reallocating your investment as you approach retirement. They should be used over a long investment horizon. Call us today to determine if this strategy might be appropriate for you.
To find out more about how to use videos like this to attract your ideal client through digital marketing on the internet, click here