Target-Date Funds

A target-date fund is a complete portfolio in one fund that gets more conservative as your retirement year approaches. Here is how the glide path works, what to check and the common mistakes.

One fund, whole portfolio

A target-date fund holds a mix of stock and bond funds chosen for people retiring around a certain year, such as 2055 or 2065. It rebalances automatically and gradually shifts from mostly stocks toward more bonds and cash as the target year approaches. It is the default investment in many workplace retirement plans.

Inside a target-date fund: U.S. stocks, international stocks and bonds, mixed for you.

Unlock all of Investing School

The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.