As salaamu alaykum. I need help. My empolyer uses T. Rowe Price retirement funds. I don’t have control over which funds my money should be invested in. Right now the fund they investing my money in is call T Rowe price retire 2055 TR F ( TTRNX), but I can’t find this funds on Zoya. I don’t know how many percents is shariah complaint or not.
Did you find the answer for that question because I have the same issue here and I have no idea what should I do.
As salaamu alaykum brother. No, I haven’t received any answers yet.
There are several challenges for Muslims when it comes to target-date funds:
- They are often “funds of funds”, meaning their holdings consist of other funds as opposed to holding stocks and other securities directly. This makes them more difficult to screen for shariah compliance.
- The allocation of the holdings change frequently. For example, if the fund consists of 10% bonds and 90% stocks today, the allocation can change to 12% bonds and 88% stocks the following year. The fund will continue to re-adjust your allocation until the “target date” is reached, making it extremely complicated to determine how much to purify each year.
- There are not great halal-friendly options when it comes to target-date funds, as they almost always consist of bonds and other interest-bearing securities.
What other funds do they have available? Can you provide the complete list?
On a side note, I assume your employer has a matching program. If not, you’re better off opting out of the 401k plan and setting up an IRA instead, which would give you total control over your investments.