Target-Date Fund Investing in 2022
Learn how these investments work, what to look for when choosing one, and which ones earn our highest ratings.
As the default option in many employer-sponsored retirement plans, target-date strategies play important roles for many. Target-date funds can also be good choices for investors who would like simplify their portfolios and be less hands-on with their asset mixes.
In a nutshell, target-date strategies blend stocks and bonds in a single portfolio, providing asset-class diversity in a single fund. The portfolios become less risky as they draw closer to their "target date." That target date generally corresponds to the owner's retirement date.
In this guide, we explore how target-date funds work and how they differ, key factors to consider when choosing among vehicles, and how various target-date series rate based on key factors like price and investment process.
What Are Target-Date Funds?
Investors in target-date funds can set up a diversified portfolio and maintain a sensible asset allocation for decades without breaking a sweat.
In Praise of Target-Date Funds
To critics of target-date funds: Are you seeing what I'm seeing?
How Much Risk Is Your Target-Date Fund Taking?
Here's what a glide path is and why it matters.
How to Choose a Target-Date Fund
Expenses and glide path are just two factors that investors should consider.
The Best Target-Date Funds for 2022 and Beyond
Only one series earned an upgrade to the coveted Gold-medalist ranking this year.
American Funds Target Date Retirement Series
This is a stalwart target-date series.
BlackRock LifePath Index Target-Date Series
This remains a first-class target-date series.
Fidelity Freedom Index Series
A thoughtful approach at a low cost makes this a strong choice for target-date investors.
Pimco RealPath Blend Series
This target-date series offers the best of both worlds.
State Street Target Retirement Series
This target-date series enjoys durable advantages.
T. Rowe Price Retirement Target-Date Series
A fine primary retirement option.
Vanguard Target Retirement
The original low-cost choice is still a cut above its peers.
3 Target-Date Funds for an IRA in 2022
Here's why target-date funds can be excellent choices for an IRA.
Target-Date Deep Dive: Vanguard
The giant's target-date series remains among the best for retirement savers.
Target-Date Deep Dive: Fidelity
We unpack the differences among the firm's three target-date strategies.
Target-Date Deep Dive: T. Rowe Price
The firm has one of top teams for asset-allocation research and execution in the industry.