Can alternative investments improve target date funds (TDFs) and provide a better retirement? Target date funds are a type of defined contribution (DC) plan that automatically shifts allocation from risky assets to safer assets as the employee nears retirement. For many employees this automated asset allocation management increases expected annual income at retirement. Yet defined contribution plans were originally designed to only supplement retirement income and these DC plans, including target date funds, provide a risk-return profile that is usually inferior to that of defined benefit plans with allocations to alternative investments. Read the full summary below.
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