AAII Weekly Digest: Making Sense of Mutual Fund Data

A Second Look at How Target Date Funds Change Their Allocations Target date funds offer the premise of a one-stop solution for investors seeking professional allocation strategies. They are commonplace in 401(k) and other similar employer-sponsored retirement plans. However, there remains confusion about how to use target date funds. This article offers an overview of…

 

A Do-It-Yourself Approach to Target Date Retirement Investing

Advertised as a one-stop shopping, automatic-pilot retirement vehicle, life cycle or target date mutual funds have become increasingly popular. These funds are aimed at individuals seeking an all-in-one retirement fund to invest his or her retirement nest egg, with a target date whose termination date approximates the date of his or her projected retirement (e.g.,…

 

The February 2018 AAII Journal is Now Available Online

Feature Article » The Individual Investor’s Guide to the Top Mutual Funds 2018 by AAII Staff Our annual mutual fund guide provides information and performance statistics on nearly 1,600 funds on AAII.com.   Departments » Briefly Noted Current news items of interest to individual investors. Retirement Doesn’t Negatively Impact Health Prioritizing HSA Contributions and 401(k)…

 

AAII’s Guide to the Top ETFs for 2017

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Model Fund Portfolio: Two ETFs Replaced With Lower-Cost Equivalents Following James Cloonan’s quarterly review of the AAII Model Fund Portfolio, he replaced two ETFs. The new mid-cap and small-cap ETFs have both lower expense ratios and lower trading costs than the funds they are…

 

Invest, Exceed Goal, Then Stop Taking Risk

At what age should you change to a more conservative allocation, and what should that allocation look like? The answer depends on who you ask or where you look. Target date funds, for instance, use glide paths. Over time, a glide path changes a portfolio’s allocation from being more aggressive to being more conservative. This…

 

Using ETFs in a Tough, Sideways-to-Bear Market

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Using ETFs in a Tough, Sideways-to-Bear Market Over the last 100-plus years, there have been more bear markets than bull markets. Since there are usually more bear market years than bull market years, you have to get the best return you can during bear…

 

A Second Look at How Target Date Funds Change Their Allocations

Target date funds offer the premise of a one-stop solution for investors seeking professional allocation strategies. They are commonplace in 401(k) and other similar employer-sponsored retirement plans (aka, defined-contribution plans). According to Vanguard, 88% of defined-contribution plan sponsors offer target date funds. Furthermore, four in 10 participants in a defined-contribution plan using Vanguard funds solely…

 

Most-Read Posts for November 2016

Here are the most-read AAII Blog posts for November 2016: Lowell Miller’s Best Dividend Screen A low-interest rate environment has helped to fuel a run-up in the prices of dividend-paying stocks. Equity-income investing is once again fashionable, but some investment advisers have always preached the long-term benefits of investing in dividend-paying stocks. Lowell Miller is known…

 

10 Axioms For Reaching Your Retirement Goals

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Robo-Adviser Asset Allocation and Securities Robo-advisers are growing in popularity, especially among those who do not want to deal with managing money themselves. As part of Computerized Investing’s ongoing coverage of robo-advisers, this installment compares the asset allocation recommendations and risk-return profiles that were…

 

AAII Members Forgo Target-Date Funds, Prefer DIY and Being More Aggressive

A target-date fund is a hybrid mutual fund that automatically resets the asset mix of stocks, bonds and cash equivalents in its portfolio according to a selected time frame that is appropriate for a particular investor. A target-date fund is similar to a life-cycle fund except that a target-date fund is structured to address some…