Fear of the possibility of rising interest rates is now being connected to the most popular default investment inside 401(k) plans: target date funds.
Joe Light and Liam Pleven in the
Wall Street Journal report that, like other fixed income mutual funds or other asset allocation products that invest in bonds, rising interest rates could pummel target date funds.
The article offers input from several folks, including:
Dave Scott, chief investment officer of Sunrise Advisors in Leawood, Kansas;
Fran Kinniry, who helps oversee
Vanguard's [
profile] target date funds, the second largest target date fund family in the industry; a participant who is a 55-year-old computer programmer;
Jerome Clark, PM for
T. Rowe Price's [
profile] target date funds, the third largest target date fund family; and
Marc Fandetti, principal at Meketa Investment Group in Westwood, Massachusetts.
Michael Aneiro of
Barron's picked up on the
WSJ report. 
Edited by:
Neil Anderson, Managing Editor
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