Guides / How investing works
Target-date funds: the all-in-one option
A mix that gets more conservative as a date approaches.
Target-date funds are named for a year, roughly when you plan to retire. They hold a mix of investments that gradually shifts toward steadier ones as that year approaches. They're a common default in 401(k) plans.
Things to check
- The expense ratio, which varies a lot between fund families
- How the mix changes over time (the "glide path")
- That you don't hold other funds that undo its balance
General education only. We don't recommend specific funds. Nickel Gains isn't paid by any broker, fund company or adviser.