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.

budgeting · Subtopic

Insurance

Browse Beelinger guides, reviews, and practical money resources.

1 article Updated July 3, 2026

← All budgeting articles

More budgeting subtopics

Articles

Insurance (1)

Term vs. whole life insurance: Which is better?

Term Life vs. Whole Life Insurance: The Real Cost Breakdown Term life is usually the cleaner fit for…

Jun 22, 2026 · Beelinger staffs

Explore all budgeting content

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

Go to budgeting hub →

One money move, every Tuesday.

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

✓ You're in! Check your inbox.