• Posts
  • Investing Review: Target-Date Funds

Investing Review: Target-Date Funds

Hey, GRIT VIP! 🚀 Here’s another investing article to help you continue your education. Let’s get into it!

Target-date funds are a popular investment option designed to simplify long-term investing. Imagine having a financial advisor who adjusts your investment portfolio as you approach retirement or other financial goals—target-date funds do just that, but automatically. 

These funds are structured to become more conservative over time, shifting from riskier investments like stocks to more stable ones like bonds as the target date approaches.

For example, if you plan to retire in 2040, you might choose a target-date fund labeled "2040." Initially, this fund would have a higher allocation to stocks to maximize growth potential while you have a longer investment horizon. 

As the years go by and 2040 approaches, the fund automatically rebalances its portfolio, gradually reducing its stock holdings in favor of bonds and other lower-risk investments. This process, known as the "glide path," helps reduce volatility and preserve capital as you near retirement.

Subscribe to GRIT VIP to read the rest.

Become a paying subscriber of GRIT VIP to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In

A subscription gets you:
DAILY NEWSLETTER AD-FREE – Daily GRIT takes about what is going on in the finance world with no ads (24 total newsletters per month)
RESEARCH – Monthly deep-dives into our TOP stock ideas and weekly VIP newsletters with Genevieve and Matt Allen's weekly reviews
RESOURCES - 9,000+ pages of investment resources for beginners and advanced investors to accelerate your portfolio
PORTFOLIO ACCESS – Access to Genevieve Roch-Decter, Warren Buffet, Bill Ackman, and over half a dozen other billionaire and professional investors’ LIVE portfolios


or to participate.