Читать книгу Personal Finance After 50 For Dummies - Eric Tyson - Страница 104

Target-date funds are funds of funds with a twist. Rather than maintaining a generally fixed asset allocation, especially between stocks and bonds, target-date funds adjust their mix over time.

For example, the T. Rowe Price Retirement 2040 Fund is designed for investors expecting to retire around the year 2040. It invests in about 22 different T. Rowe Price stock and bond funds. Over time (and as you approach the retirement date of 2040), the fund reduces its stock exposure and increases its bond exposure. Thus, it reduces the riskiness of the portfolio.

The risks of target-date funds are similar to funds of funds. The only additional risk of a target-date fund is if the fund manager tries to time the markets in his moves into and out of stocks and bonds and guesses wrong. The funds we recommend in this chapter don’t suffer this flaw.

Among the better target-date funds we’ve reviewed are

 Fidelity Freedom funds (www.fidelity.com)

 T. Rowe Price Retirement funds (https://individual.troweprice.com/public/retail)

 Vanguard Target Retirement funds (www.vanguard.com)