What is a target date fund?

Question

I am working to decide how much of my money belongs in stocks, bonds, and cash. As things stand, some accounts are for retirement many years away, while other money may be needed for a home purchase or current spending. This decision reaches beyond my own account because another family member is affected, so liquidity, taxes, and flexibility matter more than they would if I were deciding only for myself.

Soradin · Accepted Answer

It is a diversified fund that generally becomes more conservative as a selected year approaches, though strategies and fees differ. For this planning decision, asset allocation is the mix of stocks, bonds, cash, and other investments selected for a goal. The decision belongs inside the broader household plan rather than in a separate silo, rather than focusing on the account or product in isolation.

What is a target date fund?

Soradin

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