target date funds
Age-based retirement portfolios
Target date funds are investment funds designed to shift automatically from aggressive to conservative as a specific year approaches—typically a retirement date.
A worker planning to retire around 2050 might choose a 2050 target date fund, which starts heavy in stocks and gradually moves toward bonds as that year nears.
The strategy is called a glide path.
Target date funds simplify retirement investing by handling rebalancing automatically: Most of my 401(k) is in a target date fund.
- retirementLeaving the workforce permanently
- retirement accountTax-advantaged savings vehicle
- 401kEmployer-sponsored retirement savings
- portfolioCollected works or assets
- lifecycleStages from beginning to end
glide path · allocation · diversification · pension · nest egg · horizon · autopilot · low maintenance · one-stop shop · long-term growth · rebalancing · bonds · stocks · Vanguard · Fidelity · rollover · compound interest · milestone
target date fundsactive management
Strategic investment decision-making
hedge funds · stock picking · day trading · alternative investments
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