"The funds, which have become an integral part of many Americans’ 401(k) plans, are designed to…"

Tuesday, January 17th, 2012 at 1:41 pm

“The funds, which have become an integral part of many Americans’ 401(k) plans, are designed to protect investors by decreasing their exposure to stocks and increasing their bond holdings as people get closer to retirement, or their “target” year. But the average fund with about four years until its target date fell 0.4% in 2011, according to Morningstar Inc., a fund-research firm. That trails the Standard & Poor’s 500-stock index, which gained 2%, including dividends, and is well below the Barclays Capital Aggregate Bond Index, which rose nearly 8% for the year.”

Target-Date Funds End Another Year Far Away From Bull’s-Eye – WSJ.com