Most
target -
date retirement
funds follow this general approach on the theory that investors want to take less risk as they age,
although not all
target -
date funds start with the same stock percentage at retirement or end up with the same percentage in bonds, and some may not arrive at their most conservative stocks - bonds mix until you're in your late 70s or early 80s).
According to Morningstar's 2016
Target - Date Landscape study, the average asset - weighted annual expense ratio for target - date funds is 0.73 %, although individual funds can have annual expenses of 1 % or more or less than 0.20 % (the lowest - cost target - date funds generally invest solely or mostly in index f
Target -
Date Landscape study, the average asset - weighted annual expense ratio for target - date funds is 0.73 %, although individual funds can have annual expenses of 1 % or more or less than 0.20 % (the lowest - cost target - date funds generally invest solely or mostly in index fun
Date Landscape study, the average asset - weighted annual expense ratio for
target - date funds is 0.73 %, although individual funds can have annual expenses of 1 % or more or less than 0.20 % (the lowest - cost target - date funds generally invest solely or mostly in index f
target -
date funds is 0.73 %, although individual funds can have annual expenses of 1 % or more or less than 0.20 % (the lowest - cost target - date funds generally invest solely or mostly in index fun
date funds is 0.73 %,
although individual
funds can have annual expenses of 1 % or more or less than 0.20 % (the lowest - cost
target - date funds generally invest solely or mostly in index f
target -
date funds generally invest solely or mostly in index fun
date funds generally invest solely or mostly in index
funds).
Although there's never any certainty in investing, the studies indicate that fine tuning your asset allocation beyond that of a typical
target -
date fund is likely (but not certain) to provide a higher return in the long run.