Target date funds (and multivitamins) may be the right solutions for those of us who don’t feel compelled to learn all about a particular discipline and so would rather rely on a professionally selected blend. Multivitamins are just one example.
Although this analogy was intended to help explain target date funds, it also surfaced a novel product idea: a vitamin for those born in a specific decade that changes its blend over time. You would never have to make that awkward transition from “young and active” to “middle aged and sedentary.” Although I probably won’t pursue this idea, if you do, I would be completely happy with a 10 percent royalty.
Scott Dingwell is a Director in BlackRock’s Global Client Group where he serves on the U.S. and Canada Defined Contribution Team. He writes about retirement for The Blog.