I personally don't subscribe to the "gets more conservative as you age" approach. Static portfolio allocations should remain as you age.

The whole concept behind these target-age/date funds is that volatility is lessened as you age, thus creating less of a likelihood of panic selling. But look at 2008 and you will see that very moderate 60/40 portfolios lost 25% or more. Very few people had the behavioral cahones to stave of panic selling.

Instead of these artificial solutions to perfectly normal investor behavior of fear and panic, we should create better behavioral management solutions. Fee-only financial planners would be the first place to start. A good planner can provide a barrier to these normal emotions turned abnormal investor behaviors. I have personally prevented many clients in 2008 from selling out of their portfolios last year. A target-date fund would not have been able to do that.

People are not capable, generally-speaking, of being the objective analyst when it comes to investment decision-making, especially during down markets. Behavioral biases prevent the objectivity.

Andrew Orr, CFP
President
ORRGROUP FIDUCIARY

Please do not let the Government prescribe to me what I should invest my money in! They already do that with Social Security and that isn't even an investment! It is just one GIANT Ponzi scheme.

And who will supposedly manage these accounts? Please not the people who were telling us to buy and hold for the long term, because stocks and real estate always go up?!

Let ME decide where I put my money! One thing the government could do is make those investments tax free to encourage it.