What Is a Target Date Fund? | Master Money Video

What Is a Target Date Fund

A target-date fund is a simple investment designed to grow your money until a specific retirement year, like 2050 or 2065.

You pick the fund closest to the year you plan to retire, and it automatically adjusts for you over time:

Starts out aggressive with more stocks, Slowly shifts to conservative with more bonds as you near retirement

It’s fully automated. It’s diversified. And it’s perfect if you want to invest without constantly managing your portfolio.