Diversification within Target Date Funds

Some days the stock market goes up. Some days it goes down.

Forecasting whether the market will go up or down on any one day is hard, even for professional investors. The good news is – you don’t have to, thanks to something called diversification.

When you take a closer look at the market, you’ll see that almost every day, some stocks go up while others go down.

What’s more, bonds tend to keep to their own current and may be strong when the stock market is weak.

Diversification tries to blend together different currents to give you a smoother journey. It does this by investing across a broad number of stocks and multiple asset classes.

That’s exactly what BlackRock® LifePath® target date funds do as they help you invest for retirement.

You simply pick the target date fund closest to the year you plan to retire and the fund automatically does the rest.

It’s diversified based on how close you are to retirement. When retirement is off in the distance, more stocks can help power your journey. As you get closer to retirement, the mix moves toward bonds, seeking to reduce risk.

Remember, each fund is diversified based on how close you are to retirement, so you only need one target date fund.

If you combine funds, it may no longer be the right fit for your target date – and it doesn’t necessarily improve your overall diversification.

No matter where you are in your retirement savings journey, target date funds can help you invest confidently in your future.

Visit your retirement plan website to learn more today.

Some days the stock market goes up. Some days it goes down.

Forecasting whether the market will go up or down on any one day is hard, even for professional investors. The good news is – you don’t have to, thanks to something called diversification.

When you take a closer look at the market, you’ll see that almost every day, some stocks go up while others go down.

What’s more, bonds tend to keep to their own current and may be strong when the stock market is weak.

Diversification tries to blend together different currents to give you a smoother journey. It does this by investing across a broad number of stocks and multiple asset classes.

That’s exactly what BlackRock® LifePath® target date funds do as they help you invest for retirement.

You simply pick the target date fund closest to the year you plan to retire and the fund automatically does the rest.

It’s diversified based on how close you are to retirement. When retirement is off in the distance, more stocks can help power your journey. As you get closer to retirement, the mix moves toward bonds, seeking to reduce risk.

Remember, each fund is diversified based on how close you are to retirement, so you only need one target date fund.

If you combine funds, it may no longer be the right fit for your target date – and it doesn’t necessarily improve your overall diversification.

No matter where you are in your retirement savings journey, target date funds can help you invest confidently in your future.

Visit your retirement plan website to learn more today.