There is a video clip of an interview with Jana Thompson from Schwab, at Marketwatch.com talking up their target retirement funds of funds.
I hate these types of things. As the fund moves closer to the target date it will change the fund mix to own less equities. Part of the research has been predicting what markets will do over the long term by studying what markets have done in the past. I wonder if they have researched how times products like this have failed to achieve their intended purpose?
Some of this is repeat of past posts. If you are 71 years old and both your parents are alive and 98 years old how much equity exposure do you think you need? In that type of scenario can you afford to be only 40% equities and have the SPX go up 26% in a year? If you are 51, regardless of your life expectancy, can you afford (either in dollar terms or in emotional terms) afford to watch you equity portion drop by one third and do absolutely nothing?
Stay away from static products like this, please!
Wikinvest Wire
1 comments:
Can you list a few of the websites you visit to get market information and to do a little research? I'm sure you have subscription services but I'm looking for the freebes.
I personally keep my eye on CBSMarketwatch and view via broadband the BloombergTV channel every once in a while.
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