The GAO Takes on Target-Date Funds

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Two Congressional chairs have authorized a review of target-date funds (TDFs). The last such review was in 2009, and all that changed was that risk increased. It would be a shame if this initiative failed to produce results

On May 6, 2021, Senator Patty Murray (D-WA), chair of the Health, Education, Labor, and Pensions (HELP) committee, and Rep. Robert C. “Bobby” Scott (D-VA), chair of the House Education and Labor Committee, sent a letter to Gene Dodaro, comptroller the GAO. They were seeking answers to 10 questions dealing with concerns that some aspects of target-date funds (TDFs) may be placing American retirement savers at risk. They wrote:

…we write to request the General Accountability Office (GAO) conduct a review of target-date funds (TDFs). The employer-provided retirement system must effectively serve its participants and retirees, and we are concerned certain aspects of TDFs may be placing them at risk.

In the following and in this video I answer those 10 questions. The official answers will come from the GAO, but leave your comments on this article as to whether you agree with my answers.