Is a Target Date Fund Right for You?
by Tony Drake, CFP®, Investment Advisor Representative, Founder & CEO, Drake & Associates
Jul 23, 2019
4 minutes
What year do you want to retire? That single question is the concept behind target date funds, which are quickly growing in popularity.
Target date funds debuted in 1994 as a simple option for retirement savers. They are mutual funds, based on the year the saver plans to retire. Let's say you are 50 years old and you plan to retire at age 65. You would select the target date fund for the year 2034 -- or more likely 2035, as target date funds tend to come in multiples of five. The target date fund is actively managed for the rest of your life, rebalancing to adjust risk as you
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