What Are Target Date Mutual Funds?

The recession of 2008-2009 taught us that target date mutual funds may not provide investors with the protection that they had in mind when they made their initial purchase. The general expectation of target date mutual funds is that you are theoretically able to buy a mutual fund that will get more conservative as you get closer to retirement age.

However, many investors who had purchased 2010 Target Date funds lost anywhere from 10-30% in their target date funds, which would definitely qualify as 'less than ideal' if you were planning to retire in the past couple of years. Some people may assume that target date funds will shield you from big losses in the years before your retirement, but the truth is, the different funds offer different kinds of protection to investors. For instance, Fidelity target date funds increase bond holdings substantially as retirement comes closer, based on the logic that those seeking retirement will be concerned about protecting against losses. T Rowe Price, on the  other hand, has a whole host of target date funds that hold more stocks, and are generally riskier, than other target date funds, so you should expect more volatility from their funds in the short-term, but higher price appreciate to compensate for that risk in the long-term.

Obviously, this should go without saying, but you should be sure to read thoroughly your investment prospectus before buying any security. Jim Yih at Group Benefits Online wrote a great article about target date funds, which you can read by clicking here: http://groupbenefitsonline.ca/a-target-date-fund-makes-investing-easy/ .

A Word On No Credit Check Loans

The Financial Newsline recently ran an article on no credit check loans, which I'll include a link to at the bottom of this post for your viewing pleasure. One of the most important things to keep in mind with no credit check loans is that you're not exactly dealing with the highest caliber institutions when you enter this market. Because no credit check loans generally imply that you are at a high risk of default (otherwise you wouldn't mind having your credit checked), you're going to be at the mercy of the company giving you the loan, because they know that you have very few options and are incredibly likely to acquiesce to their terms. Usually, these types of deals will lead to exorbitant late fees, administrative fees, and high interest rates, and I cannot recommend that you seek a no credit loan check outlet. But, obviously, if you're in dire straits, you're gonna do what you gotta do. If you want to check out the Financial Newsline piece on the topic, be sure to click here: http://www.financialnewsline.com/loans/no-credit-check-loans-realize-your-financial-emergency/ .