JPMorgan SmartRetirement funds

A diversified portfolio in a single fund

JPMorgan SmartRetirement funds offer a convenient, long-term solution for retirement saving. Rather than research and select individual investments, you can choose a fund based on your retirement date. JPMorgan SmartRetirement funds offer a single investment choice that's:

  • Convenient. The date in the fund's name corresponds to an expected retirement date. When your account is automatically transferred, your balance and any future contributions will be invested in the JPMorgan SmartRetirement fund dated closest to the year you turn 65. Use this calculator to determine what that is.

  • Diversified. The funds invest in other mutual funds so you receive a broad range of mutual funds in the mix. You don't need to pick or manage your own investments. The fund managers do that for you.
  • Automatic. The funds are automatically adjusted over time to become more conservative as your target retirement date approaches. This shift is known as the portfolio's
    glide path.

    The logic behind the glide path is that younger investors have a longer time horizon to retirement so they can handle more risk in exchange for maximizing return potential. Older investors, on the other hand, need to focus more on preserving their money. JPMorgan SmartRetirement funds use a "to retirement" investment strategy. Beginning 25 years before the retirement date, the fund's investment mix starts to shift annually out of stocks and into more conservative investments. By the time the target date arrives, the portfolio is positioned with the goal to generate income, protect capital and minimize risk. Here's an example of the glide path for JPMorgan SmartRetirement funds.

    click here to enlarge
    Source: J.P. Morgan Asset Management

  • Professionally managed. Experienced asset managers at J.P. Morgan select the strategies, construct the portfolios and rebalance the fund’s investments for you. They regularly monitor the performance of the fund and its investments, and make adjustments as needed. The fund managers provide this professional expertise so you don’t have to make those decisions on your own.

As with all investments, the principal value of the fund(s) is not guaranteed at any time, including at the target date.

There's nothing you need to do to take advantage of the automatic transfer to a JPMorgan SmartRetirement fund.

How do target retirement date funds work?
watch this short presentation