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Target-Date Funds: What You Need to Know

This post was originally published on this site

For investors who want a “set it and forget it” retirement account, target-date funds have been the go-to solution.

An estimated 40 million Americans have put at least part of their retirement money in target-date funds since they first started hitting the market in the early ’90s. The amount of money in target-date mutual funds and exchange-traded funds—whose mix of stocks and bonds go from riskier to more conservative over time—has now reached $1.75 trillion. If you have a 401(k) or other retirement account that invests in the market, chances are that some of your money is in a target-date fund.