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Investing

How do target-date funds work?

Quick Answer

A target-date fund holds a diversified mix of stocks and bonds and gradually shifts toward bonds as the target retirement year nears. You pick the year closest to your retirement and hold one fund.

Glide path of a target-date fund from age 25 to retirement.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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