How do American Funds retirement target date funds help address an investor’s increasing need to build wealth and protect against down markets through retirement? Since the 2008 financial crisis, investor sensitivity to volatility has increased. In this video, equity portfolio manager Jody Jonsson explains how the funds seek to address these issues.
- Retirees are unprepared for the distribution phase.
- Investors need to protect and build wealth during retirement, making meaningful equity exposure important.
- In retirement, the series seeks to lower the equity risk profile by emphasizing historically less-volatile dividend payers.
- The series benefits from flexibility in the underlying funds that can shift between equities and bonds based on changing market conditions.