Expert Strategies for Modern Retirement Solutions

Practical insights for today's retirement planning challenges.

Why Traditional 401(k) Plans Are Failing and How Target Rate Funds Offer a Solution

Target Rate Funds, powered by a unique optimizer, address the gaps in traditional 401(k) plans by providing personalized income projections and asset allocation strategies. These funds use participant-specific data to set realistic return targets and create flexible glide paths, ensuring participants only pay for active management when it adds value. Target Rate Funds offer a comprehensive solution to the vulnerabilities of traditional plans, empowering participants to retire confidently.

Jim Kaffen

Why Target Date Funds Are a Breach of Fiduciary Responsibility—and Why Some Still Don’t See It

Target Date Funds (TDFs) rely on age alone to determine asset allocation, disregarding individual financial goals and circumstances. Despite their popularity, TDFs are not a one-size-fits-all solution and may not meet fiduciary standards. A more effective approach is Target Rate Funds (TRFs), which align assets with future liabilities and provide a personalized, goal-oriented investing strategy.

Jim Kaffen

What Really Matters

In this blog post, renowned financial expert Frank Sortino critiques the traditional risk tolerance questionnaire, arguing that it misrepresents risk by focusing on volatility rather than a more realistic measure of success: achieving a Desired Target Return (DTR). While Sortino refers to this concept as DTR, at Essential Returns, we use the term Essential Returns Objective (ERO). Both concepts emphasize the importance of maximizing returns above the target while minimizing risks below it.

Frank Sortino

Maximizing Retirement Savings: The ERO Calculator and Optimizer Approach

If you're planning for retirement and wondering whether traditional target-date funds (TDFs) are your best option, this article introduces an exciting alternative. While TDFs have their benefits, they don't always consider your unique financial situation. Enter the Essential Returns Objective (ERO) Calculator and Optimizer, research-backed tools developed by leading financial experts. These tools tailor investment strategies based on your specific goals, offering a more dynamic and personalized approach. By combining the benefits of both TDFs and custom solutions, the ERO tools could help you maximize your retirement savings and give you peace of mind for the future.

Jim Kaffen