A TDF Automatically Dials Down Risk as Retirement Approaches
A target-date fund (TDF) is an automated asset-allocation fund that shifts from stocks toward bonds as you approach your target retirement year. It runs more aggressively while retirement is far away and grows more conservative as that date nears, so you never have to rebalance it by hand. But two people retiring in the same year can have very different risk tolerances and different amounts of other retirement savings, so picking the vintage that actually fits your own situation matters.
Recommended Type by Score
| Score | Type | Suggested Vintage |
|---|---|---|
| 8-10 | Aggressive | 2050 Fund and later |
| 5-7 | Growth | Around 2040 Fund |
| 3-4 | Balanced | Around 2030 Fund |
| 0-2 | Conservative | 2025/Retirement Income Fund |
Your type is based on the sum of your answers to four questions. A longer runway to retirement and higher loss tolerance points toward a farther-out vintage, while an approaching retirement date or heavy reliance on this account points toward a more conservative choice. When you actually invest, start from the vintage closest to your real retirement year and adjust from there to match your personal risk tolerance.
Frequently Asked Questions
A fund that automatically shifts its stock/bond mix toward a target retirement year, running aggressively when retirement is far off and conservatively as it nears.
It's the fund's target retirement date. Pick the vintage closest to your own expected retirement year as a starting point.
This is a simplified self-assessment for reference. Weigh your income and other retirement savings too, and check the prospectus before investing.
* A simplified scoring self-assessment for reference only; verify actual fund choices via the prospectus or an advisor.