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Big U.S. firms boost equity weightings in 401(k) target-date funds

POSTED BY: SIGNYM
UPDATED: Tuesday, October 14, 2014 17:09
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Saturday, October 11, 2014 12:30 PM

SIGNYM

I believe in solving problems, not sharing them.


Seriously????

Quote:

(Reuters) - In changes that have raised the potential investment risks in many 401(k) retirement accounts, several major fund companies are increasing the stock allocation of their target date funds, which are used by many of those with such plans.

BlackRock Inc, Fidelity Investments and Pacific Investment Management Co [PIMCO, which El Erian and Bill Gross left] - all firms that have seen returns in their target date funds lagging competitors - have made adjustments in the past year so that 401(k) plan participants, particularly those who are younger to middle age, are more invested in equities. In some cases employees who are in their 40s now find themselves in funds that are 94 percent allocated into stocks, up more than 10 percentage points.


http://www.reuters.com/article/2014/10/10/us-funds-target-stocks-insig
ht-idUSKCN0HZ09Q20141010


Wow, I hope none of you have pension funds investing in BlackRock and PIMCO! Haven't they heard? You're supposed to buy when everyone is selling, and sell when everyone is buying ... not buy when everyone is buying, especially after a big run-up.

It's be interesting to see how this works out!

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Saturday, October 11, 2014 4:08 PM

JEWELSTAITEFAN


Quote:

Originally posted by SIGNYM:
Seriously????

Quote:

(Reuters) - In changes that have raised the potential investment risks in many 401(k) retirement accounts, several major fund companies are increasing the stock allocation of their target date funds, which are used by many of those with such plans.

BlackRock Inc, Fidelity Investments and Pacific Investment Management Co [PIMCO, which El Erian and Bill Gross left] - all firms that have seen returns in their target date funds lagging competitors - have made adjustments in the past year so that 401(k) plan participants, particularly those who are younger to middle age, are more invested in equities. In some cases employees who are in their 40s now find themselves in funds that are 94 percent allocated into stocks, up more than 10 percentage points.


http://www.reuters.com/article/2014/10/10/us-funds-target-stocks-insig
ht-idUSKCN0HZ09Q20141010


Wow, I hope none of you have pension funds investing in BlackRock and PIMCO! Haven't they heard? You're supposed to buy when everyone is selling, and sell when everyone is buying ... not buy when everyone is buying, especially after a big run-up.

It's be interesting to see how this works out!


At my new place of work, just been hearing about PIMCo, apparently some have been in there, and they don't have any retirement money accumulated.
Much of what I hear now doesn't make much sense because so many have been losing money at this place.

Anyhow, can you clarify your post, of the info within?
"Target date funds" refers to funds which have a planned retirement date of a certain year in the future, or otherwise phrased as a certain number of years remaining before expected retirement - is that correct?
And then with these funds, they have had a more conservative diversification - leaning more towards the lesser-performing but also less volatile stocks? And now they are shifting toward a more growth oriented and more volatile type of stock?

Are these funds a requisite for the 401(k) participation? Can investors/retirees opt out of these funds? Do they charge an exorbitant fee to switch to a different fund?
Is your objection due to the timing of the shift? You think the growth dominance should have been during the Bull market, and not now after the gains in the market? Is that the entirety of your concern?

What have I not understood in your post, or your point? Or did I get it?

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Tuesday, October 14, 2014 5:09 PM

JEWELSTAITEFAN


No further elucidation?

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