Prediversified Plans for Taft-Hartley Funds: Get Members on Track for Retirement

Many participants in self-directed Taft-Hartley plans can benefit from broader investment diversification. New research on investor behavior suggests plan trustees should consider making prediversified funds the default investment option. This article is a case study of how trustees can take this step. to meet the needs of different plans, a choice of three types of prediversified funds is offered: 1. age-based portfolio, 2. risk-based portfolio, and 3. customized portfolios. One of the fiduciary responsibilities of Taft-Hartley plan trustees is to help members pursue a secure and comfortable retirement. Taft-Hartley plans can be most effective with a prediversified fund as the default option.