Today, one of the most popular ways to save for retirement is a target-date fund, or lifecycle fund. And for good reason—target-date funds are easy to select during enrollment, and they offer an attractive set-it-and-forget-it approach to investing.
Even so, while target-date funds can be great starting points, they only take into account one piece of information: age. To illustrate how this might play out, imagine two people. One is single and has been maxing out their retirement savings since they were 21. The other had to prioritize student loan payments, has a family to support, and is just getting started saving for retirement. If both are 35, that single piece of information would drop them into the same fund.
The point is, a one-size-fits-all approach doesn’t always fit all. Everyone’s financial situation is different. That’s one of the great things about our Advice Express tool. It’s a quick, easy way for you to get a recommendation on how to allocate your retirement portfolio in a way that’s customized to your lifestyle and goals. Here are five reasons to give it a try:
1. Advice Express considers your whole financial picture
The tool takes into account your age, income, savings rate and account balance to provide a portfolio allocation recommendation that fits your goals to and through retirement. It can also include lifetime income options, which target-date funds do not provide.
2. You get the same caliber of advice that our financial advisors provide
The recommendations come from Morningstar, a third-party firm specializing in investment research and management services. That means you’re getting objective advice based on your unique situation and retirement goals.
3. It takes just a few minutes
You just need to know a few simple pieces of information, like your current income and savings rate, and any assets you have in other retirement accounts.
4. There’s no additional cost
Advice is a major benefit of being a TIAA plan participant. We are here to support you to and through retirement, and want to make sure you’re informed, confident and set up for success at every step.
5. There’s no commitment
If you’re just curious what your recommendations would be, simply use the tool to find out. You don’t have to make any changes until you are ready.