Everyone's risk tolerance is different, but traditional investing wisdom tells us that the younger someone is, the more risk they can take in the stock market. When you're younger, your focus should be on growing your money as much as possible, which generally means investing in stocks. As you get older, your focus should slowly but surely switch to preserving the money you've made up to that point.

Target-date funds are exchange-traded funds (ETFs) based on your projected retirement year. As you get closer to the target date, the fund automatically rebalances itself to become more conservative, meaning it'll begin to hold fewer stocks and more bonds and cash. Target-date funds can be a great option for investors who prefer to be hands-off, but they can come with a hefty price tag.

Luckily, with a little bit of time every few years, you can save yourself thousands.

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Source Fool.com