Lifestyle Fund


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Lifestyle Fund

A portfolio strategy that targets persons according to age group. That is, a lifestyle fund may invest in low risk, low return securities if the prospective investor is approaching retirement and simply wants a steady income. On the other hand, a lifestyle fund may invest in precisely the opposite securities if the potential holder is young and looking to make a good deal very quickly. A lifestyle fund has the advantage of a great deal of flexibility depending on the investment goals of most persons in each age group.
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This hits the nail on the head: The major problem is, and always has been, that this is not a homogenous group-members of pension schemes are from a variety of ages, have differing levels of existing assets and alternative pension provisions, and the clunkiness of traditional lifestyle funds doesn't allow for different allocation strategies between those different groups of members.
The tool, when used by advisors, will then suggest possible investment solutions, varying in risk/return characteristics, from the new Putnam Retirement Income Lifestyle Funds suite.
Lifestyle funds, which automatically rebalance and reallocate fund investments based on an employee's age, have remained popular.
Lifestyle funds can vary widely in terms of the aggressiveness of their asset allocations and the types of funds in which they invest.
In addition, the number of employees holding one or two asset classes decreased to 32 percent, from 39 percent in 2002, which suggests that some employers are making progress in their efforts to facilitate diversification by offering third-party investment advice and making lifestyle funds available in their 401(k) plans.
For service members who expect to remain invested in one of the lifestyle funds, the calculator's 7 percent default rate may overestimate long-term investment performance and give some service members an inflated sense of the eventual size of their retirement assets.
The lineup, unchanged For more than 10 years, included a set of three lifestyle funds that provided conservative, moderate and aggressive investment options.
The lifestyle funds offered premixed allocations and investment goals designed for various life stages, such as young professionals, families with young kids, and so on.
We really love those five investment options you gave us back in 2000, and the lifestyle funds are nice, too.
But be aware your money can still go down as well as up with lifestyle funds.
Putnam Investments announced the launch of Putnam Retirement Income Lifestyle Funds (http://www.