In the Dark About Target-Date Funds? You're Not Alone.
You may have heard the term "target-date fund" thrown around in the context of retirement planning. But how much do you know about these funds and how they work? If you're relatively clueless, you're in good company. Only about 50% of workers say they understand how target-date funds work, according to a recent survey by the Employee Benefit Research Institute. If you're eager to learn more about target-date funds, here are a few things you should know.
A target-date fund is an investment fund that automatically adjusts from higher-risk to lower-risk as a specific milestone draws near. For example, if you put money into a target-date fund within your retirement plan, the target date in question is the year you might retire.
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Source Fool.com
