Target date funds can be a great instrument for financial savings for retirement. It’s pretty simple: you pick a fund, start pouring your savings into that fund, and forget about until you retire.
Target date funds have a specific date. For instance, you may plan to retire in 2050. Then, the funds keep piling up to a certain designated amount you need for your retirement. You get to maintain your current lifestyle, minus the work, after your retirement.
So, who actually benefits from these? Specifically, how exactly do you know whether this will work for you since there are tons of other retirement plans besides target date funds? Here’s how target date funds can help you find out whether you’re a right fit.
You Let A Professional Handle Matters For You
Let’s say you’re the type of person who wants to leave asset allocation to a professional fund manager in order to get peace of mind. If you are, a target date fund is just what you need. Here, you don’t have to worry about conducting research, choosing your stocks and bonds, setting up the asset allocation based on their performance, and so on. All of that is left in the capable hands of a finance professional.
You Stick To Long-Term Goals
If you’re a good goal setter—and are good at following through and completing long-term financial goals, such as setting funds aside till retirement—then target date funds suit you. A rash decision to withdraw funds before the target date can undo all your hard work. This is especially beneficial if your life is stable, meaning you don’t pay medical bills, and you’ve got great health and a stable career. Good candidates for target date funds are those already prepared for sudden changes in financial situations due to unforeseeable life events.
You Don’t Want To Pay Multiple Management Expense Ratios
Target date funds usually hold stocks, bonds, ETFs and equities. You’ll need to research, monitor and balance your investments in a way that one of them doesn’t make you portfolio overweight in that sector of the industry. Only if you can do this are target date funds a good fit. The best part, you avoid paying broker fees, online trading fees and any forms of multiple management expenses. Your assets get allocated accordingly, and your investment portfolio gets balanced by a professional till your retirement date.
If you are someone who can meet certain required criteria, don’t mind volatility in the stock market, and don’t want to actively manage your retirement savings accounts, target date funds may be what you need.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.