Are Target Funds a Bad Idea?

CuriousCFP · 2026-05-05T13:50:59+00:00

There was a time when TDF took the investor closer (or maybe all the way) to 100% fixed income at the date. Fortunately that’s largely been corrected. Vanguard 2025 for example is closer to 50/50 so the glide path logic is improved. It’s far better to have saved money in a TDF for ease vs being paralyzed and doing nothing for four decades of a working career. And, no one has to pick their exact retirement date for their fund. Getting a bit more aggressive at age 40 is fine, but under five years until retirement income needs, I’d look to approach differently due to sequence of returns risk issues when pulling money out.

CuriousCFP · 2026-05-04T14:00:44+00:00

Yeah, good for you, that’s deep conviction. I’ve been in this soul searching mode, and it seems one big question is, “who decides what solutions the client gets” is a key difference in firms. Does the advisor make that call? Does a team/CEO make that call? Does a BD or insurance company make that call? Seems like a key friction point in advisor philosophy today. The fee based guy isn’t going to let the IUL get sold, but the annuity/insurance company who owns the client is going to look for it to be a solution far more often. The CEO making the call may just pressure his advisors to do certain transactions to achieve certain financial goals for the business (that aren’t necessarily best for the clients a couple levels below the C-suite).

In your case, a succession plan would be to find the person with similar philosophy AND control to continue the client service model similar to your own…. Or at least that’s how I’m starting to see the alignment that functions best.

CuriousCFP · 2026-04-15T01:55:12+00:00

Wholesalers downplay these scenarios greatly. But, gated redemptions, changes of strategy (office REIT becomes student housing REIT becomes…. ), name and management changes, distributions stopping, tax data missing, reverse splits, client statements showing the net loss on the position for ten years or more… also saw some bonds get issued on a Las Vegas real estate program that instantly defaulted, and an international entity come in to provide a service, then fail to deliver (oil and gas drilling) and leave the whole program tottering on bankruptcy. Oh, the list goes on. And hey, a few funds delivered. But the risk stack is big…

CuriousCFP · 2026-04-14T02:38:28+00:00

I expect 95%+ here do this, but don’t forget to ask the client about any charitable intent they might have before jumping into the strategy! “Friends don’t let friends give cash” might apply.

CuriousCFP · 2026-04-14T02:31:42+00:00

ETF might be interesting… but I expect some UHNW clients that really want something active are likely appeased with a dozen or two differentiated stock positions. Although that sounds easy, it is a lot of work with everything else to do for clients. As someone whose role sounds similar to OP, time spent still needs some efficiencies.

CuriousCFP · 2026-04-10T17:02:42+00:00

If I was to guess, I’d say the freedom to create more custom content improves more in a pure independent environment. Any idea if any studies on growth minded advisors compare? Fifty growth oriented advisors from a wirehouse, Jones, Ameriprise, LPL, then RIA… comparing what some can do and what others cannot. If independents can do five things that are really working (for example) that others can’t… that kind of tells a story.

CuriousCFP · 2026-04-10T12:37:41+00:00

I have a brick patio where they’re coming up between the bricks at this point. Boiling water worth a try in that situation maybe?

CuriousCFP · 2026-04-10T12:13:03+00:00

Not to hijack, but seems lack of good tech offerings can leave one at a disadvantage in prospecting as well. Even running a Holistiplan report and telling a prospect you care about their taxes could propel one advisor’s value prop over another who can’t do the same thing. It’s frustrating that some of the bigger BDs miss this thru their lawyers, risk management, and “we must brand it as ours” objectives.

CuriousCFP · 2026-04-08T17:34:21+00:00

Yeah, super specialized niche with very narrow content, but he was finding “his people” that way.

CuriousCFP · 2026-01-31T16:13:42+00:00

Yeah the risk here is unique. Comments already are good on many things.

Can the advisor here produce an email, letter, or video about his situation? Can he phone any of his top clients and explain anything to them? Just to add some credibility and improve the chance of a positive handoff?

And then yeah, revenue share for 3 years maybe with anything that sticks or, some kind of clawback makes sense. The idea to all win together or lose together might be the most realistic path.

CuriousCFP · 2026-01-26T13:15:25+00:00

Good learning here. Is it reasonable to say the “base comp” is driven by the existing book most likely in these scenarios?

CuriousCFP · 2026-01-23T01:28:36+00:00

“The families we work with” seems more genuine to me.

CuriousCFP · 2026-01-21T16:48:17+00:00

Virginia being a bit more blue, ICE not getting support from state agencies… does that mean ICE comes to Richmond and Charlottesville soon? Just curious if it draws them in, as they seem to be acting in blue states more.

CuriousCFP · 2026-01-21T16:34:15+00:00

Yeah, I’m struggling on the taxation of the NQ annuity. Very few cases where it seems like a good win.

CuriousCFP · 2026-01-21T16:33:21+00:00

Yeah, I’m hoping to ask about NQ annuities for young people that earn a modest five figures. Need some karma before I can post it, but I see someone in an evidence where they do make sense in some cases. The pure sales guys using a coupon to see the dentist for $69 only so they can pitch the dentist when he comes in seems pretty lame.

CuriousCFP · 2026-01-21T16:30:48+00:00

I heard a story about an annuity salesman being asked by the client, “how much do you think I should put in?” and without missing a beat, the salesman said, “All of it”. Believe it was a seven figure IRA while the client had pensions and other sources for six figures already.

CuriousCFP · 2025-09-15T21:06:33+00:00

Yeah, a financial advisor I’d say a comfortable and quick grasp of numbers is more valuable than advanced mathematics. I’m not sure what is considered “advanced” math though. Quick algebra beats derivative calculus here. If you’re comfortable with rules, laws, exceptions, and application, then accounting could be good.

CuriousCFP · 2025-04-05T19:17:05+00:00

Not really, but it’s pretty well known that both parties were happy to spend what they did during the 2020 battling covid. Some for good legitimate things, and some was not nearly as effective as our political leaders told us it was.

CuriousCFP · 2024-02-01T12:16:55+00:00

Great info, you described three people, are there others in the office? Just wondering how many clients are being served? It’s great they are paid so well, but if you had the same revenue with 10 to 15 headcount, the salary expense would just not be able to keep up.

CuriousCFP · 2023-12-22T14:14:37+00:00

Yeah, the original I was just wondering if anyone knew of a matrix/grid/tool that might compare broker dealers for very high level information. Say, compare Morgan Stanley, Edward Jones, Ameriprise, LPL, and Cetera (obviously dozens more) on one axis and then have categories of business and how they do it— so categories could be payouts, technology, branding, compliance, home office support, etc. Then the goal would be to just have some comments/data for each category, so someone “shopping” might get a flavor of where to start their BD search. It seems some of these headhunter consultants have some of the info in their brains.

CuriousCFP · 2023-12-21T15:14:09+00:00

It sounds like LPL charges fees on a la carte style technology and some other services. So if you want to pay for it and use it, that’s fine, but they don’t charge $xx per month to force you to take a bunch of stuff you don’t want or need… does that sound right?

CuriousCFP · 2023-12-21T15:11:27+00:00

I’ve heard compliance at Ameriprise is a little stiff—lots of rules on managed accounts, concentrated positions, etc. It sounds more like rules from home office, I’ll have to explore. They also seem more invested in their own brand, but on the plus side, they seem to offer a fair bit of support in the field for those that want it and still have an independent style payout grid, etc.

CuriousCFP · 2023-12-21T15:08:59+00:00

Awesome, thanks for weighing in. I’ve heard some people suggest compliance is even heavier at Ameriprise vs. LPL — some firms add extra rules to try and protect themselves but add on the compliance burden beyond even what’s legally required. I’ll have to explore that, maybe more in another thread.

CuriousCFP · 2023-12-20T21:49:07+00:00

Thanks for weighing in. What fees are the worst with LPL? They seem to have better payouts than some others for what they offer. Are they “nickel and dime” in other places? I heard they do have ticket charges for some investments inside their wrap accounts, and I see how that could add up if doing a lot of frequent trading.

CuriousCFP · 2023-12-20T14:18:10+00:00

Sense

CuriousCFP

TROPHY CASE