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Target-Date Funds Explained: Set-and-Forget Retirement Investing
How target-date funds automatically adjust stock/bond mix as you approach retirement.
July 9, 20267 min readBy MyWealthForge
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Key Takeaways
- 1Pick fund closest to your expected retirement year (e.g., 2055).
- 2Automatically shifts from stocks to bonds over time.
- 3Expense ratios: 0.08–0.75% — prefer under 0.20%.
- 4One fund can be your entire 401(k) portfolio.
Target-date funds are the most popular 401(k) default — one fund handles diversification and rebalancing automatically.
Understand asset allocation by age.
How Glide Paths Work
Far from retirement: 90% stocks. Near retirement: 50% stocks. The fund rebalances automatically.
Check the glide path chart before investing.
Choosing a Fund
Compare Vanguard, Fidelity Freedom Index, Schwab Target — low fee index versions.
Rebalance manually only if you use individual funds instead.
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