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Old 05-01-2011, 06:56 AM
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Target-Date Retirement Funds in U.S. Recover 2008 Losses, Morningstar Says - Bloomberg

Target-date funds designed for investors retiring last year have recouped losses from the credit crisis, Morningstar Inc. (MORN) said.

The funds labeled 2010 gained 5 percent on average from U.S. stocks’ high in October 2007 through Feb. 17, the report said. The Standard & Poor’s 500 Index lost 7 percent over the same period.
It doesn’t refute the fact that if you were planning to start withdrawing your money around 2008 or 2009 that you would be hurt,” said Josh Charlson, senior mutual-fund analyst for the Chicago-based research firm. “It lessens the sting.”
The above is presented FYI
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Old 05-01-2011, 07:39 AM
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important point if anyone is not aware of it about target funds.

one thing about target funds is that lump sum investing in tends to give better results than dollar cost averaging in and dollar cost averaging in can give very widely differing results than the funds themselves show.

since markets rise 2/3 of the time and are down 1/3 if you dollar cost average in typically you fall quite short of the actual results the funds see.

thats because your buying less and less shares each time as prices are rising just at the same time the funds cut stock exposure as part of their strategy going forward leaving you much more conservative than the numbers the funds show.

all in all though we are having a spectacular run back up from the lows .
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