Welcome New York Times Readers
Check Your Target-Date Fund, Especially if You Plan to Retire Soon
David Marra
David Marra spoke with the New York Times to share his perspective on target-date funds and the risks for investors. His comments highlight how a “set-it-and-forget-it” mentality can create a false sense of security among investors and the importance of on-going investment monitoring.
Target-date funds, often used as simple, all-in-one retirement solutions within 401(k) plans, are designed to automatically shift from growth-focused investments to more conservative allocations over time. While their ease of use has made them widely popular, this New York Times article highlights potential risks to be aware of—particularly for investors nearing retirement—as many funds still retain meaningful exposure to risk assets, which can lead to significant losses during market downturns. It also notes that fixed allocation “glide paths” and common investor misunderstandings can create a false sense of security around retirement preparedness. While these funds can be an effective starting point, the piece underscores the importance of actively monitoring allocations, maintaining adequate savings levels, and incorporating more personalized planning as retirement approaches.
“These funds set up the expectation that I can not look at my investments and I’ll be OK. That’s a dangerous expectation.” — David Marra, Chief Investment Officer, Markin Asset Management
“People have divorces or other life events, along with expectations about their retirement. It’s a very naïve idea that you can pick one point in time and that 20 years later you’ll land where you want to land.” — David Marra, Chief Investment Officer, Markin Asset Management
At Markin Asset Management, we seek to actively monitor and manage opportunities and risks, reduce exposure to large loss, maximize tax efficiency, and ultimately improve the income and compounding characteristics of portfolios for clients who are in various phases of their lives. Our approach builds on traditional investment theory and quantitative methods to help Registered Investment Advisors (RIAs) utilizing our investment services better manage risks and capitalize on opportunities.
This communication is not a solicitation or offer to sell investment advisory services. All content provided is for informational purposes only and should not be relied upon as investment advice. Information is subject to change at any time, and Markin Asset Management, LP is under no obligation to provide updates or amendments. There is no guarantee that any strategies discussed will be effective or that any events will come to pass. Investment in securities involves the risk of loss. Past performance is no guarantee of future returns.
All opinions expressed by David Marra in this presentation are his personal opinions and do not reflect the opinions of Markin Asset Management, LP or any of its affiliates. You should not treat any opinion expressed as an inducement or recommendation to make a particular investment or follow a particular strategy. The opinions expressed were based upon reasonable information known at the time and are subject to change without notice. Past performance is not indicative of future results.
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