Forget Target Date Funds. Here's a Better Way to Invest Your 401(k).
If you signed up for your company's 401(k) but never actually logged into your account to choose your investments, then chances are, your money is in a target date fund. These funds are often the default investment option for 401(k) savers, and it's easy to see why.
With a target date fund, there's no work to do on your part. Based on your estimated retirement age, a fund like this will have you invested more aggressively during the wealth-building stage of your career. Then, as retirement nears, you'll be shifted into more conservative assets, like bonds and maybe even some cash, to minimize your risk.
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Source Fool.com