Understanding LifePath® Dynamic target date funds

  • When planning and saving for your retirement, it can be difficult to know what path to take.

    Some people enjoy the challenge of finding their own route.

    While others prefer to let professionals help them on their investment journey.

    If that’s you, there are diversified investment options that use an active portfolio manager and sophisticated time-tested investment strategies to move you toward your retirement goals.

    LifePath Dynamic target date funds invest in a mix of actively managed and index funds from BlackRock, the world’s largest asset manager.

    The portfolio manager assesses risks, like inflation or interest rates, and adjusts to changes in market conditions in real time.

    On any given hike, there may be several paths that reach the same scenic overlook. Each route has a unique set of characteristics that require different skills and equipment.

    If there’s a chance of rain, your manager might choose a longer, but more dependable route. If conditions are bright, a steeper, more direct option might move you toward your retirement goals more quickly.

    Similarly, a target date fund’s investment allocation changes over time and throughout your career.

    When you’re young and far from retirement, the investment mix is more aggressive to focus on growth while you have more time to endure the typical ups and downs of the market.

    As you approach retirement, the portfolio manager shifts the fund to a more conservative investment allocation with the goal of preserving your savings.

    When you arrive at your desired retirement date, the fund shifts to an investment mix designed to help you retain spending power through retirement.

    So if you like the idea of moving into retirement with the help of professionals taking an active management approach to your investments, LifePath Dynamic target date funds are available to help you on your journey.