From Yahoo Finance: 2025-06-17 09:41:00

Target-date funds are ideal IRA investments because they fit investors’ time horizons and require minimal effort to manage. Regular rebalancing keeps portfolios in check as investors near retirement. However, target-date funds may not be the best choice for taxable accounts due to taxable bond income and potential tax events from rebalancing.

Investors should ask about the glide path, underlying funds, and fees before investing in target-date funds. Understanding how the glide path aligns with risk tolerance at different life stages is crucial. Additionally, knowing the fund types and fee structures is important, especially in an IRA where cheaper share classes may not be available.



Read more at Yahoo Finance: Why target-date funds are great IRA investments