Plain-English definitions, reviewed by an independent investor
Target-Date Fund
A target-date fund auto-shifts from stocks to bonds as a chosen retirement year approaches.
A target-date fund auto-shifts from stocks to bonds as a chosen retirement year approaches.
(Glide path from aggressive to conservative over time)
Why it matters
It is the one-fund solution for hands-off retirement savers.
Common confusion
The path is fixed and may not fit your real risk tolerance or market timing.
Frequently Asked Questions
How does it de-risk?
It trims stocks and adds bonds automatically as the date nears.
One fund enough?
Often yes for a simple plan, but check fees and the glide path.