How to Manage Your 401(k) Without Lifting a Finger

Contrary to popular belief, managing your 401(k) doesn't have to be labor-intensive. Sure, some 401(k) portfolios require maintenance tasks like rebalancing. But there's one 401(k) investment that functions as a portfolio on its own and manages your risk over time, too. It's called a target-date fund, or TDF.

A TDF can grow your retirement wealth with little involvement from you. Here's a closer look at how TDFs work to streamline your 401(k) savings efforts.

TDFs are funds that invest in a strategic blend of stocks and bonds. The blend is strategic because it's designed to suit your retirement timeline. The fund accomplishes this by targeting a specific retirement year, which you'll find in the fund's name.

Source Fool.com