From Yahoo Finance: 2025-05-08 14:38:00

Target-date fund assets have hit a record $4 trillion in 2024, making them the top choice for American retirement savings. These funds are widely used by 401(k) plan sponsors and state auto-IRA programs, with assets pouring in due to their default status for new contributors. Cost-effective index-based target-date funds dominate the market.

Investing in target-date funds is a simple way to ensure age-appropriate diversification and automatic rebalancing for retirement goals. Vanguard reports that over 80% of its 401(k) participants use target-date funds, with 2024 contributions from 5 million plan members reaching an all-time high. The funds have outperformed expectations, delivering strong returns even during market volatility.

Target-date funds offer a hassle-free way to stay diversified and manage risk, especially during market turmoil. While the S&P 500 experienced losses, target-date funds remained relatively stable, providing investors with peace of mind. Regular savings and disciplined investing in these funds have proven beneficial for long-term financial goals.

For those nearing retirement age, target-date funds have proven to be a successful investment choice. The average annual returns for 2025 target-date funds exceeded expectations, showcasing their effectiveness as a retirement savings vehicle. Despite market fluctuations, these funds have provided stability and growth for investors, ensuring a secure financial future.



Read more at Yahoo Finance: Your employer’s most popular retirement option just topped $4 trillion