Target-date funds as of
Before the leaflet goes back in the folder, reduce Target-date funds to one line: , “Name the cash flows,” 1. Do not copy the button text as the reason you signed. Target-date funds package a declining equity glide path into a single default — convenient behaviour engineering that still needs fee and suitability checks.
Use the calculator for scenarios, then return to the section pages when you want the vocabulary behind the curve. What is target-date funds in one sentence? No. Tool-Lifes pages are educational atlases. Decisions need your goals, constraints and, when appropriate, a licensed adviser.
Do I need a high return for compounding to matter? Higher net rates help, but time and contributions often dominate — especially early. Costs and behaviour can erase a “good” rate. Treat outputs as scenario sketches. Vary contribution, rate, fees and inflation to see which lever moves your goal date.
Always ask whether a figure is nominal or real. A high nominal path can still lose purchasing power. No. Illustrations use round teaching numbers. Markets, inflation and taxes change. In the net rate that compounds. Expense ratios, advice charges and spreads all reduce terminal wealth.
Keep the name, the year, and 1. “Name the cash flows” is why those three stay.1
Figures to keep
- Year of the rule
- 1
- Figure in the sum
- 1
- Item
- Target-date funds
- Reason kept
- Name the cash flows