Decoder · Kinds of investments

Target-date fund

A single fund built around a year — the year you expect to retire, printed in its name. It holds a mix of stock and bond funds and slowly shifts toward steadier holdings as that year approaches. One fund, and the mix adjusts itself. It is a category, not a recommendation: different companies run theirs differently and charge differently.

For your first $100: This is the 'one fund that does the mixing' category. If your first $100 goes into a workplace plan, a fund like this is often what the plan offers new savers — read its cost before anything else.

Stock, in plain words Share, in plain words Bond, in plain words

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See this word inside your order