Target Date Retirement Funds (also called LifeCycle Funds) have gained in popularity because of their ultra simple retirement strategy - just buy one fund and let the fund managers handle the rest. But does this strategy work for everyone? There are a lot of issues to consider before trusting your retirement to a "Set-it and Forget-it" type of investment strategy.
I wrote an article over at the Fear Dollar (part of the Fearless Men Family of Websites) that addresses all of the issues with these type of funds. The full article can be found here. As a preview, here are some things to think about:
1. Age is only one factor in your asset allocation decision - with these funds it's the only factor!
2. The holdings (especially the bonds) can vary greatly in risk
3. You lose a lot of flexibility when it comes time to sell
4. Adding other Assets complicates the portfolio
Read the article before investing in one of these funds and you might think twice about handing your financial future off to one manager.