Do Target-Date Funds Offer Guaranteed Income?
Target-date funds (TDFs) have grown in popularity over the last decade, especially among those who lack confidence in their ability to allocate their assets properly. In theory, all you have to do is pick the right TDF, contribute money regularly, and then enjoy the results in retirement. But despite their growing use, there's a lot about TDFs that people still don't understand.
When asked how a TDF provides income in retirement, 64% of those surveyed by financial services organization TIAA said that it provides a guaranteed monthly check. It can, but many of them don't. To make things more confusing, some provide monthly payments, but they're not guaranteed. Here's a look at how it all works.
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Source Fool.com
