An Investment Mix That Changes Over Time
The investments in a target date fund change over time based on the target retirement date. This gradual shift is called a “glide path.”
The Investment Mix Changes Over Time
For illustrative purposes only. Not intended to portray an actual glide path. Stock and bond allocations will vary among different target date funds.
Here’s how it works:
1. Significant stock investments throughout the lifetime of your fund can help manage the risk of outliving your savings in retirement.
2. An increased emphasis on bonds as you near your retirement date can help manage the risk of market declines.
3. May continue to be managed beyond retirement, so you could feasibly use a single fund for decades.
The Benefit of Saving for Retirement
Target date funds make it easy to start saving for retirement. Of course, the longer you have to invest, the better your potential to realize your retirement goals.
See How Contributions to Your Plan Could Add Up Over Time:
Why Target Date Funds Can Be a Good Choice
Target date funds can simplify the process of choosing and managing your investments. See how target date funds work and why they may be the right choice for you.