As you may know, a target date fund will become increasingly more conservative (by historical standards) as you grow older. This can be a nice feature if you're the kind of investor that does not like to make manual adjustments to your portfolio and you also expect a large withdrawal need as you near the age specific in your target date fund (probably 2050 or something similar, right?).
The reality is this: many investors don't actually need for their investments to be as conservatively postured as the target date fund becomes, as they've typically saved other assets outside of this fund and perhaps their retirement picture has changed and they plan to continue to work.
At your age, the target date fund is probably not too far removed from what I think may be suitable for you, but as you grow older it may take a bit more ongoing analysis.
Of course, if I can clarify any of the above or offer any guidance, please feel free to reach out.
Adam C. Harding, CFP
For informational purposes only, not to be considered investment, tax, or legal advice.
See my recent articles in The USA Today and Nasdaq.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.