What is a target date fund?

  • Why is picking investments in your retirement savings plan so hard? Maybe it’s because your perspective changes overtime.

    When we’re young, we have years ahead of us so we can take more risk as we weather the typical ups and downs of the equity markets. But as we get older, and we can actually imagine ourselves reaching retirement one day, we typically start thinking about reining in the risk to help protect our savings.

    Target date funds seek to do just that. They offer a diversified mix of equities and fixed income that rebalance overtime, no matter where you are on your life’s path.

    From the start of your career until well into your retirement years, target date funds are designed to make retirement investing easier.