TIAA-CREF in New York said that it has started seven life-cycle funds.
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Eligible participants will be able to select one of the funds based on the year they plan to retire, the company said on Nov. 16. Each fund is structured to rebalance its portfolio to maintain an appropriate mix of investments as the target retirement year approaches.
The funds include inflation-linked bonds at or before the target date, which are intended to give owners a measure of inflation protection during retirement. The funds' allocation formula calls for a higher percentage of equities compared to fixed-income securities when the target year is reached.
