Beyond Labels

Beyond Labels: Advancing Your Approach to Target-Date Evaluation and Selection

Despite progress in recent years in understanding and evaluating target-date strategies, we find ourselves at a new plateau in target-date communication—one that is rife with labels and shorthand in the form of digestible and overly-simplistic dichotomies. We believe that much of the jargon currently used to evaluate and analyze target-date funds (TDFs) is limiting and, in some cases, downright misleading.

Take an in-depth look below at these four labels (log-in required).

Dive In to the Labels

scales

I: To vs. Through

ruler

II: Open vs. Closed

puzzle

III: Custom vs. Off the Shelf

Wall St sign

IV: Active vs. Passive

A False Distinction

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One Choice® Target Date Portfolios

When it comes to retirement, One Choice stands out.

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A One Choice Target Date Portfolio's target date is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.

Each target-date One Choice Target Date Portfolio seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio's allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and money market instruments.

By the time each fund reaches its target year, its target asset mix will become fixed and will match that of One Choice In Retirement Portfolio.