Target Date Funds appear to have helped a large number of 401(k) and 403(b) plan participants during the first quarter of 2020. Many plan participants were invested in Qualified Default Investment Alternatives (QDIA)s which happened to use Target Date Funds. QDIA investments and Target Date Funds were the topic of conversation at the recent TPSU Virtual Town Hall Meeting on Friday, May 1, 2020. A diverse group of industry professionals included, Joe DeNoyior of Washington Financial Group, David Blanchett of Morningstar Investment Management, Liana Magner of Mercer, Sharon Scanlon of Lincoln Financial Group and Tom Foster, Managing Director of the TRAU Speaker’s Bureau served as Moderator.
The conversation focused on the use of Target Date Funds as a QDIA. This causes us to look at record-breaking movement in the equity markets during the first quarter of this year. QDIA portfolios and plan participants have been monitored for activity and differences in behavior.
Plan sponsors and retirement committee members who attended the TPSU VTHM are eligible to receive 1 hour of CE from SHRM – with an opportunity for 3 additional hours. Tom Foster, brought up the differences of off-the-shelf Target Date Funds and managed accounts. The panelists also reviewed the glide-paths for established Target Date Funds and the concepts of active TDF versus passive TDF management.
The replay from the May 1st 2020 panel of experts from Friday’s Virtual Town Hall Meeting can be found by clicking HERE.
You can register for the next Virtual Town Hall Meeting on May 15th by clicking HERE.
Tom Foster of The Retirement Advisor University (TRAU), will serve as the Moderator of the next Virtual Town Hall Meeting.
