This week on our weekly Money Radio (105.3 fm) segment Brandon Oliver hosted a discussion on Target Date Funds and how plan sponsors should monitor them.
Some of these best practices included actions plan sponsor & investment committees should follow including:
- Establishing a process for comparing and selecting TDFs
- Establishing a process for the periodic review of selected TDFs
- Understanding the fund’s investments–the allocation in different asset classes (stocks, bonds, cash), individual investments, and how these will change over time
- Reviewing the fund’s fees and investment expenses
- Inquiring about whether a custom or non-proprietary target-date fund would be a better fit for your plan
- Developing effective employee communications
- Taking advantage of available sources of information to evaluate the TDF and recommendations you received regarding the TDF selection
- And of course documenting the process
for more information on how to evaluate and monitor your plans target date funds please contact Arcwood Consulting or review the DOL TDF bulletin below.