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.

Banking · Subtopic

banking tips

Browse Beelinger guides, reviews, and practical money resources.

1 article Updated July 9, 2026

← All Banking articles

More Banking subtopics

Articles

banking tips (1)

How to Find the Right Bank for You

Most People Pick the Wrong Bank. Here’s How to Find Yours. The right bank isn’t the one with…

May 24, 2026 · Beelinger staffs

Explore all Banking content

Guides, tools, reviews, and the latest articles in Banking.

Go to Banking hub →

One money move, every Tuesday.

No fluff. Just one idea you can act on this week.

✓ You're in! Check your inbox.