David McKnight looks at Target Date Funds (TDFs) and why their set-it-and-forget-it approach to investing is NOT something you should rely on. David kicks things off by explaining how TDFs work, including why they tend to be a popular option for novice investors. While it sounds like an excellent approach, David points out two major flaws. "A lot of the problems with TDFs come down to sustainable withdrawal rates in retirement," says David. The 4% Rule consists of you being able to withdraw 4% of your day one balance in retirement, adjusted every year thereafter for inflation. Unfortunately, a TDF is fundamentally incompatible with the 4% Rule. Since the 4% Rule is the most expensive way to ensure that you don't run out of money in retirement, David suggests doing something else.  He recommends figuring out what your retirement shortfall is and then buying a Guaranteed Lifetime Income Annuity to help bridge your income gap.  While being on a glide path or relying on a set-it-and-forget-it approach may sound like a good idea, it actually isn't conducive to evaluating the strategies that will help you reap the most efficiency from your retirement savings.     Mentioned in this episode: David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

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