Should Investors Create Their Own Target-Date Fund?

Target-date retirement funds are often found in company 401(k)s, IRAs and other investment vehicles. But many investors in such funds wonder if they couldn’t get similar or better returns by putting together replica versions, without the fees.

We ran a little test and discovered that, as long as you have the time and diligence to monitor and adjust your portfolio over time, then yes, the do-it-yourself version does on average outperform the original target-date fund by eliminating its fees and expenses.