<p class=“MsoNormal“>A target-date fund can
be an <a target=“_blank“ href=“https://www.fxrevenues.org/“ target=“_blank“>excellent investment tool</a> for
hands-off investors who are near or already retired.</p><p class=“MsoNormal“>With target-date funds,
investors can obtain a suitable, stable risk-return profile through asset
allocation.</p><p class=“MsoNormal“>As your retirement
draws near, the fund will periodically and automatically readjust its
investments, following the performance of a safer asset mix, such as ramping up
your bond holdings and reducing your stock holdings.</p><p class=“MsoNormal“>Still, a target-date
fund has advantages and disadvantages that should be considered carefully.</p><p class=“MsoNormal“>Why Consider a Target
Date Fund?</p><p class=“MsoListParagraph“>1.
Helps Young Employees</p><p class=“MsoNormal“>A target date fund can
be significantly helpful to you if you’re a young employee. That’s mainly
because of the amount of time you have.</p><p class=“MsoNormal“>You have a long
investment horizon as someone working in their 20s or 30s. Therefore, in a target
date fund’s early year, your investments should primarily include stocks since
they are typically a good bet for generating long-term returns.</p><p class=“MsoListParagraph“>2.
Instant Diversification</p><p class=“MsoNormal“>A single target date
fund can provide you with a well-diversified portfolio of domestic and
international stocks and bonds.</p><p class=“MsoNormal“>In addition, target
date funds’ asset allocation is readjusted as you near retirement. So, if
you’re investments were initially focused on stocks, the fund will shift the
focus to bonds as you prepare for retirement.</p><p class=“MsoListParagraph“>3.
Rebalances on the Investor’s Behalf</p><p class=“MsoNormal“>Target date funds are
built to perform the rebalancing on the investor’s behalf.</p><p class=“MsoNormal“>While an investor’s
risk tolerance becomes less and less as they age, they may still end up with an
investment portfolio that doesn’t align with their needs. For example, a market
in a solid bullish condition could leave you having too much money in stocks and
fewer bets on bonds.</p><p class=“MsoNormal“>With a target date
fund, you could go for years without checking your retirement investments and
remain appropriately invested.</p><p class=“MsoNormal“>Why Think Twice About Opting
for a Target Date Fund?</p><p class=“MsoListParagraph“>1.
One-Size-Fits-All Nature</p><p class=“MsoNormal“>The one-size-fits-all
nature can be a huge disadvantage of target-date funds since this makes the
fund quite incapable of considering or adapting to the current state of the
economy.</p><p class=“MsoNormal“>For example, a target
date fund’s default concept is that bonds will always be less risky than stocks.
However, this is not entirely accurate in all economic situations, especially
right now when we are seeing higher inflation and interest rates.</p><p class=“MsoNormal“>Because of this
one-size-fits-all nature, investors can be caught off guard during unexpected
economic events.</p><p class=“MsoListParagraph“>2.
Lack of Diversity</p><p class=“MsoNormal“>Target-date funds have
a simple design, but this may not work for some investors who may need a
broader mix of assets than stocks and bonds. That’s because they may have to
consider more than their estimated retirement year, like existing assets such
as their <a target=“_blank“ href=“https://fxrevenues.com/signup“>real estate or savings</a>. </p><p class=“MsoListParagraph“>3.
Complicated Fee Structure</p><p class=“MsoNormal“>The fee structure of a
target-date fund can be complicated to grasp, as it has a management fee plus a
fund-of-funds management fee.</p><p class=“MsoNormal“>That means your
target-date fund portfolio doesn’t only have one mutual fund. Instead, it
consists of several mutual funds with different expense ratios. </p><p class=“MsoNormal“>Therefore, you should
properly research what the firm may charge you, as the fee structures vary
depending on the fund company.</p>

This article was written by ForexLive at forexlive.com.

<p style=““ class=“text-align-justify“>The rejection close to 145.00 this week has been a key point to note for the dollar and the sharp retreat in USD/JPY has also seen other major currencies take advantage of the softer greenback towards the end of the week. The added jawboning by Japanese officials earlier in the day <a target=“_blank“ href=“https://www.forexlive.com/centralbank/usdjpy-kicked-lower-by-suzuki-matsuno-and-then-kuroda-20220909/“ target=“_blank“>here</a> is also helping, with Kuroda outlining that when the pair moves by 200 to 300 pips, then it can be considered a ‚rapid‘ move. That said, I’ll bet he has no complaints about the 200 pips retracement today.</p><p style=““ class=“text-align-justify“>On the balance of things, I’d still argue that Japanese officials are still fine with a falling currency. I mean they know that they are not in a spot to contest otherwise with the BOJ still maintaining an ultra easy monetary policy at the moment. But they are just trying to curb any sudden depreciation and with a rise in USD/JPY from 140.50 to 145.00 within a few days, they saw the need to keep things in check before traders got too carried away.</p><p style=““ class=“text-align-justify“>Looking at the chart above, the drop sees a break back below the 100-hour moving average (red line) at 142.81 and now price action is caught in between that and the 200-hour moving average (blue line) at 141.10. That sees the near-term bias more neutral and outlines the technical levels in play in the short-term.</p><p style=““ class=“text-align-justify“>Further support is seen closer to the 140.00 handle while key resistance remains at the 145.00 handle in the bigger picture.</p><p style=““ class=“text-align-justify“>But for now, the retreat is still keeping more measured within the levels above as it moves in tandem with the dollar decline seen elsewhere as pointed out earlier:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slides-further-down-1-against-the-euro-and-sterling-20220909/“ target=“_blank“>Dollar slides further, down 1% against the euro and sterling</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/risk-trades-rejoice-on-dollar-correction-20220909/“ target=“_blank“>Risk trades rejoice on dollar correction</a></li></ul>

This article was written by Justin Low at forexlive.com.

<p class=“MsoNormal“>Money Flow Index
Explained</p><p class=“MsoNormal“>The <a target=“_blank“ href=“https://demaxis.com/“ target=“_blank“>Money Flow Index</a> (IMF) is a technical indicator
that utilizes volume data and price in recognizing overbought or oversold
signals in an asset. Also, it could be used to identify divergences, which warn
of a trend alteration in price.</p><p class=“MsoNormal“>The oscillator is
moving between 0 and 100. A reading above 80 is deemed overbought, and an
interpretation below 10 is considered oversold. Even so, the levels 90 and 10
are also used as thresholds.</p><p class=“MsoNormal“>Calculating the Money
Flow Index</p><p class=“MsoNormal“>The following are the
several steps for calculating the Money Flow Index. It is recommended to do the
calculation using a spreadsheet rather than by hand.</p><p class=“MsoNormal“>Step 1: Compute the
typical price of each of the last 14 periods.</p><p class=“MsoNormal“>Step 2: For each
period, spot whether the common price was higher or lower compared to the
previous cycle. It will tell you if the raw money flow is positive or negative.</p><p class=“MsoNormal“>Step 3: Calculate the
raw money flow by multiplying the classic price by volume for that specific
period. Use negative or positive numbers depends on whether the term was up or
down.</p><p class=“MsoNormal“>Step 4: Compute the
money flow ratio by adding up all the positive money flows over the past 14
periods. Then, divide it by the negative money for flows for the same prior
course.</p><p class=“MsoNormal“>Step 5: Calculate the
Money Flow Index using by utilizing the ratio constituted in step four.</p><p class=“MsoNormal“>Step 6: Continue doing
the calculations as each new period ends by only using the data from the last
14 periods.</p><p class=“MsoNormal“>MFI’s Usage</p><p class=“MsoNormal“>One major way to use
the Money Flow Index is when there is a presence of divergence when the
oscillator is traversing in the opposite direction of the price. It is a hint
of a possible reversal in the prevailing price trend.</p><p class=“MsoNormal“>For instance, a very
high Money Flow Index that starts to decline below a reading of 80 while
underlying security continues to rise is a price reversal signal to the
pitfall.</p><p class=“MsoNormal“>On the other hand, a
very low MFI level that climbs above a reading of 20 while the implied security
continues to sell off is a signal of price reversal to the upper side.</p><p class=“MsoNormal“>Also, traders are
watching for larger divergences using multiple waves in the price and MFI. For
example, a stock hit a peak of $10.00 but pulled back to the $8.00 level. Then,
it rebounded higher to $12.00. </p><p class=“MsoNormal“>This means that the
price has made two successive higher, which is at the zone of $10.00 and
$12.00. If the MFI makes a lower higher when it reaches $12.00, the oscillator
is not confirming the new high. Accordingly, it could indicate a plunge in
price.</p><p class=“MsoNormal“>Furthermore, the
overbought and levels are used to indicate a possible trading chance. It is
believed that movements below 10 and above 90 are rare. Besides, traders observe
for the MFI to move back above 10 to <a target=“_blank“ href=“https://demaxis.com/Registration“ target=“_blank“>indicate
a long trade</a> and plummet below 90 to signal a short trade.</p>

This article was written by ForexLive at forexlive.com.