Skip to main content

๐Ÿš€ We're live on Product Hunt today โ€” your support means the world

Glossary ยท retirement

What is Target-date fund?

A single-fund solution that automatically adjusts its stock/bond mix as a target retirement date approaches.

Last updated

Target-date funds are common defaults in 401(k) plans. You pick the fund named for your retirement year (e.g. 'Target Retirement 2050') and it handles asset allocation and rebalancing for you.

They're a legitimately great choice for hands-off investors. Watch the underlying expense ratio (aim for under 0.15%) and the glide path (some are more aggressive than others).

Practice this in Aurora

Project this decision against your real numbers with a private, calm dashboard.

Open Financial OS โ†’

Frequently asked questions

Can I use a target-date fund outside retirement accounts?

You can, but they're less tax-efficient in taxable accounts due to internal rebalancing. Better fits inside IRAs and 401(k)s.

Related terms