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Part 3: TDFs, An issue of control

The same factors that make TDFs attractive to certain clients are also among the ones that trigger the greatest amount of concern among other clients.
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One of the major appeals TDFs hold for investors is the ability to contribute money to an investment account that automatically shifts its asset allocation over time according to a pre-determined schedule. It is perhaps not surprising, therefore, that the mix of assets and allocation in the glide path, as well as the glide path itself, represent the top two motivating factors among clients considering a TDF.

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The very same factors that make TDFs attractive to certain clients are also among the ones that trigger the greatest amount of concern among other clients. While fees top the list of concerns, the mix of investments and the glidepath itself are both ranked among the four most concerning factors, according to the plan advisors surveyed. These results suggest that clients are relatively evenly divided on whether giving up control is the point of investing in TDFs or merely a necessary evil.

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