With Target-Date Funds, You Can…

Get Access to Professional Money Management

By selecting a target-date fund, you don’t have to select your own mix of funds (i.e. large cap, small cap, international, etc.). All these decisions and the day-to-day investment management are handled by a team of investment professionals. By delegating this responsibility, you may be better able to avoid emotional decisions, helping you to stick to your plan during volatile financial markets.

Harness the Power of Diversification

A variety of asset classes, including equities (stocks) and fixed income (bonds), are typically included in target-date funds. This professionally selected mix is designed to balance your portfolio so that during times when certain asset classes decline, your portfolio could benefit as other asset classes rise.

Ensure Your Investment Matches Your Life Stage

Target-date funds automatically adjust to become more conservative as your retirement approaches. The rate at which a target-date fund becomes more conservative is called a “glide path.” The goal of the glide path is to preserve more and more of your retirement savings as your retirement date nears.