Target-Date Funds With Annuities Are Gaining Ground. Is That Good for Your Retirement Plan?
Summary
Host Ivana Hampton interviews Morningstar’s Jason Kephart about target-date funds with built-in annuities gaining traction in 401(k) plans. They discuss how these funds offer guaranteed lifetime income to combat longevity risk, contrasting simpler plan-based options with complex retail annuities. The episode explores trade-offs like lost liquidity and opaque fees, while noting recent regulatory guidance and Vanguard’s entry are driving momentum for these hybrid investment solutions.
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