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What is a target-date fund?

Quick answer

A target-date fund is a mutual fund that holds a diversified portfolio that automatically becomes more conservative as you approach a target retirement year (e.g., Vanguard 2050 fund). Set-and-forget option for retirement accounts — pick the year closest to your retirement, contribute regularly, ignore.

More context

A target-date fund is a mutual fund that holds a diversified portfolio that automatically becomes more conservative as you approach a target retirement year (e.g., Vanguard 2050 fund). Set-and-forget option for retirement accounts — pick the year closest to your retirement, contribute regularly, ignore. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

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