When to Consider Target-Date Funds

Since target-date funds were first offered in the early 1990s, they’ve become a widespread investment vehicle for retirement. Their booming popularity is no surprise. After all, a target-date fund (or TDF) is easy for novice investors to manage, and even experienced investors can appreciate the hands-off simplicity they can offer.

But do your research: a TDF may not always be the best choice for you.

TDFs are designed for individuals with particular retirement dates in mind. In fact, the name of the fund often refers to its target date. For example, you might see funds with names like “Portfolio 2030,” “Retirement Fund 2030,” or “Target 2030″ that are intended for individuals who plan to retire in or near the year 2030. The fund’s mix of investments automatically adjusts as time moves on, becoming more conservative as you get older and closer to retirement.

Jana Samek, Relationship Manager – Retirement ServicesWhen to Consider Target-Date Funds
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COLA Limits for 2019

The Internal Revenue Service and the Social Security Administration have announced the cost of living adjustments (COLA) applicable to dollar limitations for retirement accounts and the Social Security wage base for 2019. Many of the limits have changed for the 2019 plan year. Changes for 2019 are in bold in the chart below.

IRA and SIMPLE plan limits are both up $500. The annual IRA limit is now $6,000 (catch-up remains the same at $1,000 for those 50 and older) and the SIMPLE limit is $13,000 (catch-up remains at $3,000).

Jana Samek, Relationship Manager – Retirement ServicesCOLA Limits for 2019
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