On Target, Or Missing the Mark?
Two out of three 401(k) participants have assets in a target-date fund — an “all-in-one” fund intended in theory to be the holder’s only investment (see chart). These funds are often the default option in workplace plans, so you may have a target-date fund without fully understanding what it is, or perhaps without even knowing you own it. In fact, target-date funds are not as simple as they appear to be. Like all investment options, they have strengths and weaknesses. Focused on time Target-date funds offer a professionally managed mix of assets — typically a combination of other...
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