Life-Cycle Funds Become Popular for Long-Term Goals
New York Times (04/06/03) p.30; Browning, Lynnley

Life-cycle funds--also known as target-date or target-retirement funds, lifestyle funds, or life-strategy funds--are becoming more popular, with 35 percent of 401(k) plans offering them in 2001, according to Hewitt Associates. Life-cycle funds, which automatically move money among asset classes, are well-suited for people saving for only one goal, such as retirement, but are less appropriate for those saving for multiple goals. They do not usually outperform the market during good times, but can provide a good diversity.

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