L Fund target date

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Q. I expect to retire at 65 and live at least to 90 (longevity runs in my family). The L Fund documentation recommends choosing a fund with a target date that closely matches your retirement date, while your advice column consistently recommends a date that corresponds to your life expectancy. The earlier date would obviously lessen portfolio investment risk. Assuming I will have enough money at retirement to survive for 25 years, is there another reason that you prefer the life expectancy date?

A. I have always recommended that you use the lowest risk investment strategy that will safely fund your goals. Which L Fund you use, or whether you use an L Fund at all, is up to you. My suggestions about using the L funds have never taken into account any specific circumstances and are only the most general kind of guidance.

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