Baker: Target date funds could make private investments appropriate

Private Investment in 401k Plans - Industry experts believe including private investments in target date or target risk funds is beneficial for retail investors [2] - Concerns arise when private investments are offered on a standalone basis due to complexity [2][3] - Target date funds alleviate the need for individual consumers to perform due diligence on complex private investments [5] Due Diligence and Risk - Allocating a small portion, such as 5% to 20%, of target date funds to private investments may be appropriate [4] - Taking due diligence responsibilities away from consumers comes at a cost, making expenses a significant factor [5] - Advisors and employers, acting as fiduciaries, bear the responsibility of ensuring funds are priced appropriately [7] Fund Selection and Evaluation - Evaluating funds involves assessing traditional fixed income and large-cap equity funds, both domestic and international [6] - It's crucial to understand liquidity risk and how it may play out in a particular fund [7]