Select the Fund that Matches Your Time Frame to Retirement

When selecting the fund that’s most appropriate for you, simply ask yourself “In which year do I plan on retiring?” In many cases, this will lead you to the fund that matches that year. Keep in mind that this target year does not necessarily represent the year you anticipate leaving your current employer. It is the year you expect to either leave the workforce completely or the year you will need to tap into your retirement savings to supplement or replace your income in retirement. Also, if the date when you anticipate needing the money is later than your anticipated retirement date, you may want to consider investing in the ‘next’ target- date fund (the fund representing the next date in the series), giving your retirement savings the opportunity to grow until you expect to need it.