Ask an Advisor: Should We Move Our Retirement Assets Into a Target Date Fund or an Annuity?

Core Impact Points

• The couple has a combined pension and Social Security income of $8,400 per month, which will drop to $6,730 if one of them passes away.
• They have $1.6 million in a 401(k) and are considering using a low-cost total return target fund to avoid robo-advisor fees.
• The couple also has $350,000 in Roths and a taxable brokerage account of $300,000, which will be subject to Required Minimum Distributions (RMDs).
• They are looking for a low-cost option to manage their retirement assets and ensure they meet their long-term financial goals.
• The decision highlights the importance of retirement planning and the need for individuals to carefully evaluate their investment options.
• The couple's consideration of a target date fund underscores the growing popularity of these investment vehicles in the US retirement market.