Target Date Funds The NFL Way

Highlights from this episode:

• Target date funds provide an automatic, hands-off approach used in NFL retirement plans for ease and baseline growth.

• But high fees, limited flexibility, and poor alignment make these funds a mismatch for athletes with significant wealth and unique needs.

• Building real wealth demands tailored strategies that reflect the complexity and ambition of professional athlete families.

From rookie basics to veteran game plans—target date funds in an athlete’s financial life

Every seasoned player remembers the basics—the first playbook, the standard drills, sticking with what is easy to understand. Riccardo Stewart shared that for his family, Sizzler and Hometown Buffet were childhood milestones. As an athlete starts their career, retirement accounts often default to a similar “set-it-and-forget-it” investment: the target date fund. It’s familiar, automatic, and for years, few question the details.

NFL veterans like Sam Acho have lived this story. He trusted advisors at major firms, accepting his retirement plan’s setup without direct oversight. It wasn’t until joining a specialized team at AWM that he received the kind of financial coaching that reveals the difference between generic convenience and optimized strategy. Target date funds are the “default meal”—reliable early, but outgrown as knowledge and needs advance.

Why target date funds became the league’s standard

Target date funds are single-fund solutions that automate how retirement savings shift from stocks to bonds as the player nears retirement. Zach Miller described how, as an NFLPA committee member, he saw these funds selected as the default for league 401(k)s and IRAs. Leaving retirement funds sitting in cash exposed providers to lawsuits and robbed players of growth. Introducing target date funds ensured automated, modest returns while protecting plan sponsors from liability. “Set-it-and-forget-it” made for an easy out-of-the-box option, especially for those without hands-on advisors.

Providers chose these funds to serve the broadest cross-section of members. For someone navigating finance alone, a target date fund may work. But they aren’t designed for athletes fielding millions, managing a condensed earning window, or building a family legacy. This is why one-size-fits-all rarely fits the pros.

The limits—where default investing fumbles the ball

The principal concern, as Jeff Locke explained, is being “stuck with whatever the provider decided was going to be in the target date fund, which might not be best for you.” High internal fees are common, driven by underlying investment choices the athlete doesn’t control. NFL players specifically face incompatible timelines and liquidity needs. Money tied up in bonds inside a retirement account cannot be accessed without penalty until age 59½, while athletes may need quick reserves post-career. “For most financial plans we build for active NFL players, the target date fund doesn't make a whole lot of sense.”

Growth is also at stake. Consistent with the podcast, even a 1% increase in returns over decades can mean an additional $500,000 in wealth; bumping expected returns by 2% can add $1 million. These numbers aren’t rounding errors—they are the difference between fleeting success and a legacy. As Zach Miller put plainly, “For someone with the kind of wealth an NFL player does, it just doesn’t make sense.”

How about you?

Your game evolves, and your wealth playbook should evolve with it. Default solutions like target date funds may offer basic protection, but true stewardship requires a custom strategy—one that maximizes flexibility, after-tax growth, and purposeful alignment with your family’s future. Graduate from generic options; partner with a team who knows how to keep your legacy in play for generations.

Call or text us on 602-989-5022.