Target-Date Fund
What is Target-Date Fund?
A fund that automatically shifts from stocks to bonds as a chosen retirement year approaches.
Understanding Target-Date Fund
You pick the fund closest to your expected retirement year, such as a 2055 fund. It starts with mostly stocks and becomes more conservative over time along a path called the glide path.
Target-date funds offer one-decision diversification and are common default options in 401(k) plans. Glide paths and fees differ between providers.