Target date funds provide a diversified portfolio with an asset allocation based on a person's targeted retirement date.  If the targeted retirement date is far away, the fund will invest more heavily in equities (stocks) that, while riskier, also have the potential for higher returns.  As the targeted retirement date gets closer, target date funds will shift more of their investments to fixed income alternatives (bonds and cash equivalents), trading off the potential for higher returns for the comfort of less risk.  Since the target date fund will alter its holdings automatically as you age and approach your targeted retirement date, target date funds can be great choice for many investors.  To learn more about Target Date Funds, watch the video below!

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