How Have Your Target-Date Funds Fared This Year?
In folklore, a silver bullet can quickly kill an otherwise resilient werewolf. But real-life challenges -- such as saving for retirement -- rarely have such a straightforward solution.
Target-date funds are positioned as an easy solution for retirement savings. A target-date fund's objective is to be a single asset that adjusts itself to meet shareholders' needs at all phases of retirement savings. In the early years, when the investment timeline is long, the portfolio is optimized for gains. In the later years, closer to retirement, the portfolio of the same fund gets more conservative to protect shareholders' capital.
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Source Fool.com
