Target Date funds aren’t broken yet, but they will be, and it will devastate those near retirement -- much worse than in 2008 because: 

• In 2008 there was only $200 Billion in TDFs. Now there’s 20 times that, at $4 Trillion and growing. 2008 created an uproar. Imagine a 20X response this time.
• Since 2008, TDFs have actually become riskier. US stocks have won the performance horserace, and that wins business.
• An oligopoly of just a few firms has emerged to manage 70% of the $4 Trillion in TDFs. Oligopolies are never good for consumers and cause procedural prudence to depart from substantive prudence.
• Our 75 million baby boomers were not in the Risk Zone in 2008, but they are now. Losses in the Risk Zone can ruin the rest of life

 

Please read my new book. Fixing Target Date Funds describes how TDFs can and should be fixed. The Kindle is free if you order it between 8/4 and 8/8.

 

TDFs are way too risky near their target date. The saying “don’t fix what isn’t broken” does not apply to the lifetime savings of participants in TDFs. The fact is that TDFs are indeed dangerous. It will take a stock market crash to reveal just how dangerous they are.

 

Fixing these funds after they collapse won’t help baby boomers; it will be too late. Baby boomers in TDFs need protection – NOW. See the “Fixes” section that leads the book, including the chapter on “Personalization.”

 

Personalization of TDFs is the new wave that offers a solution to the problem, but the typical implementation confuses risk capacity with risk tolerance. We can glean a (pretty poor) estimate of capacity from recordkeeper data, but individual participants need to tell us their risk tolerance if we really want to manage their savings effectively.

 

Most rich people (with high risk capacity) want to stay rich, so low risk tolerance. Similarly, poor people might want to take big risks in order to stop being poor. The problem is that those who default into a QDIA do not want to engage, so their risk tolerance is unknowable. Personalization does work for non-defaulted participants, but that’s not a QDIA.

 

Here’s my press release. Please share it.

 

 

 

FOR IMMEDIATE RELEASE July 16, 2025

 

New Book Champions Better, Safer Target Date Funds

Kindle (Free 8/4 to 8/8/25) or Print Version

 

For anyone who relies on TDFs—or advises those who do—this book is a must-read guide to understanding the risks, solutions, and future of a secure retirement.

 

[San Clemente, CA  Author Ronald Surz announces the publication of his new book that explains why target date funds are broken, and how to fix them. TDFs are broken by far too much  risk at their target dates when they’re typically 85% invested in risky assets. This leaves investors vulnerable to major losses at the worst time in their lives. Remember 2008 when TDFs lost more than 30% for those near retirement. Since then, risk levels have only increased.

 

Surz’s fix is an innovative glidepath that actually follows the academic theory that TDFs say they follow, but don’t – they’re much riskier. A revolutionary suite of U-shaped glidepaths ensures safe navigation “to” and “through” retirement,  providing personalization while prioritizing protection.

 

“Target date funds have operated for too long without clear benchmarks, leaving both fiduciaries and investors guessing,” says Surz. “They expose near-retirees—especially baby boomers—to dangerous levels of risk. Sadly, it may take the next market crash to finally wake people up to the need for safer alternatives. “

To address this, Surz introduces the industry’s first performance benchmarks for TDFs—tools designed to drive accountability, improve decision-making, and set a new standard for secure, responsible retirement planning.

 

Surz’s book outlines critical flaws in today’s target date funds–and how to fix them:

• Misaligned Risks: TDFs claim a solid academic investment theory, but they stray dangerously from it,  exposing investors to far more risk than theory.
• Proprietary Lock-In: All investments are controlled by fund managers of the TDF company who are unlikely to be the best in every asset class.
• Suppressed Innovation: A few large firms manage over 70% of TDF assets. Oligopolies quash innovation.
• Fiduciary Breaches: Fiduciaries are not vetting their TDF selection, opting to choose their bundled service provider, causing the buildup of the oligopoly.

Click here to download your complimentary copy of the eBook (8/4-8/8). ($9 outside this date range)

Click here to download your print version for $19.95.

About the author. Ronald Surz is president of  Target Date Solutions, developer of the  Safe Landing Glide Path followed by the SMART target date fund index, Soteria personalized target date accounts, and Age Sage do-it-yourself lifetime investing. His passion is helping his fellow baby boomers.

 

 

 

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