“You could be cheating yourself out of some retirement money without even knowing it,” said Katie Lobosco at CNN Money. Target Date Funds are great option to choose within your 401(k) as they offer a mix of stocks and bonds that automatically adjust as retirement approaches. But a majority of investors are not using it correctly by not putting all of their 401(k) assets in Target Date Funds. As investors add more funds alongside Target Date Funds, they leave their asset allocation skewed since Target Date Fund is designed to hold all of one’s assets. Savers who didn’t put everything in their Target Date Funds had annual returns that were 2 percent lower on average than those who did. To maximize returns, you should treat all of your investments as a single portfolio. (cnn.com)
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