What target fund should I invest in?

Invest in an index-based target-date fund dated closest to the year you turn 65 (e.g., a 2060 fund if retiring around 2060). Ensure the fund series includes the word 'Index' with an expense ratio below 0.15%.

Can I lose money in a target-date fund?

Yes. Target-date funds hold stocks and bonds that fluctuate with broader market movements. However, broad diversification across thousands of global assets protects you from the permanent failure of individual companies.

Should I hold other index funds alongside a target-date fund?

Generally, no. Target-date funds are designed as 100% all-in-one allocations. Adding individual S&P 500 or tech funds over-concentrates your portfolio and disrupts the automated glide path.

What happens when a target-date fund reaches its target year?

At the target date, the fund reaches its most conservative asset allocation (typically 30%–50% stocks and 50%–70% bonds). Over time, many providers merge mature funds into a general Retirement Income Fund focused on stable cash distributions and capital preservation.

Financial Fitness Quiz

Question 01

When you get paid, what's your first move?

Transfer to savings or investments first — pay yourself first. Pay the bills, then enjoy what's left with some intention. See what's left after expenses hit — then figure it out. Feel a wave of stress — honestly not sure where it goes.

Question 02

How do you approach a big purchase?

Plan and save months in advance — I don't like financial surprises. Research deals carefully, then pull the trigger when the timing feels right. Put it on a card and figure it out later — YOLO. Avoid it entirely — big purchases feel overwhelming.

Question 03

What's your honest relationship with budgeting?

I track every dollar — spreadsheets, apps, the works. I have a general sense of my numbers — I like flexibility. Budgets feel too restrictive — I don't use one. I've tried but always feel overwhelmed and give up.

Question 04

You receive an unexpected $1,000 bonus. What happens?

Invest it or direct it toward a specific financial goal. Save most, spend a bit — balance is the whole point. Spend most of it — unexpected money is for experiences. Get anxious — it'll probably disappear into bills anyway.

Question 05

How do you handle credit cards?

Pay in full every month — interest is a tax on poor planning. More than the minimum; I carry small balances sometimes. Minimum payments only — deal with the balance later. I avoid them altogether — too stressful to manage.

Question 06

When you think about retirement, you feel…

Confident — I have a clear plan and I'm executing it. Cautiously optimistic — I'm on the right track but could do more. Unconcerned — that's a future-me problem. Overwhelmed — I'd rather not think about it.

No account needed • Takes 60 seconds

What's Your Financial Personality?