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.