Before You Buy a Target Date Fund, Consider This Simple 3-Fund Strategy First
Target date funds are an extremely popular option for retirement savers.
According to the Investment Company Institute, 59% of 401(k) participants use target date funds. And they're even more popular with young savers. As of the end of 2020, target date funds accounted for 50% of 401(k) assets held by participants in their 20s.
While target date funds are one of the simplest ways to save for retirement, they're not without their downsides. The cookie-cutter approach to asset allocation can ultimately hold back your retirement savings.
Source Fool.com
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