Choosing individual investments in a workplace 401k can overwhelm new employees. Target Date Funds provide an automated, professionally managed allocation in a single fund option.
Under 29 CFR 2550.404c-5, Department of Labor rules designate Target Date Funds as Qualified Default Investment Alternatives. Each fund maintains an automated glide path that adjusts risk over time.
A target date fund holds higher equity exposure in early career years, shifting automatically into fixed income as retirement approaches. This structure eliminates manual rebalancing requirements.
A low-cost target date fund provides instant diversification and automated risk management across your career.
What target date year is assigned to your workplace retirement account?
(Not financial advice. For educational purposes only.)
