Should You Invest Your 401(k) in a Target Date Fund?
If you're offered a 401(k) plan through your employer, it could pay to take advantage of it. Many companies that sponsor 401(k)s also match employee contributions to some degree. And so participating in that plan could be your ticket to free money.
But the money you put into your 401(k) plan shouldn't just sit in cash. Rather, the key is to invest it so it grows into a (much) larger sum over time. And in that regard, you have options.
You could invest your 401(k) in a target date fund, and if you were to go this route, you'd be in good company. Many savers rely on target date funds because they truly take the guesswork out of investing for long-term goals. But while there's an upside to falling back on a target date fund for your 401(k), you may want to consider putting your money elsewhere.
Source Fool.com
