Lately, investors have been focusing mostly on what to expect from the market heading into 2025. Given the relative uncertainty of the upcoming U.S. economic policy, this fixation has made a lot of sense. However, ensuring one’s portfolio is prepared for a far longer time horizon is still important. This is doubly true when it comes to planning for retirement. Now more than ever, investors should look closely at their portfolio and see how it’s helping to build up their long-term savings.
A recent survey from BlackRock illuminated how savers truly feel about their retirement plans. Crucially, the survey found that 60% of respondents across all generations worry that they may outlive their retirement savings.
Retirement problems for investors don’t stop there, either. The survey adds that 80% of savers say that the concern over outliving their retirement funds is negatively impacting their mental health.
Saving for retirement can cause a lot of stress, but it doesn’t have to be that way. Target date funds can give investors the tools they need to retire peacefully.
Stay Ahead of the Game With NSFOX
One such fund is the Natixis Target Retirement 2065 Fund. This mutual fund blends active and passive investment strategies to set investors up for long-term returns.
The crux of NSFOX’s strategy lies within its glide path. In the early years, before the mutual fund reaches its target year, NSFOX mostly invests in equity strategies, including other mutual funds and ETFs. Mixing risk and reward, these equity investments are chosen to provide robust total returns.
As the fund approaches its target year, NSFOX will increasingly opt to move more of its portfolio to fixed income. In the years after the target year is reached, the fund expects to hold a roughly 60-40 weight between fixed income and equity investments.
Allocating more funds to fixed income makes sense for retirees. Fixed income strategies can lower overall portfolio risk while generating income to cover everyday expenses.
There’s still plenty of time for investors to invest in NSFOX, and the fund is already generating strong long-term gains. As of October 31, 2024, the fund was up over 30% in net asset value.
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