Are you invested in a “target date fund” within your 401k?

If so, there’s a high probability you are leaving tens, if not hundreds of thousands of dollars on the table.

Here’s what they are, and how they work:

– funds are named based on a target date of retirement (i.e. “2055 fund” is built for those expecting to retire in 2055)

– over time, the fund gradually makes adjustments to its portfolio based on that retirement age (i.e. it will gradually decrease exposure to risk over time, and increase income-producing assets like bonds)

The pros are it’s simple and you may “set and forget” it.

The cons are you pay higher fees and, as a result, will likely under-perform the market by a significant margin.

Bottom line – a competent advisor can help you customize your own portfolio using other funds available within your plan to promote lower fees and higher returns.

Based on my projections, this can increase your account balance by hundreds of thousands of dollars over the span of a working career – no exaggeration!