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How to build your own target-date retirement fund

Yahoo Finance
Summary
Nutrition label

78% Informative

When 401(k) plan sponsors and state auto-IRA programs automatically enroll workers in a retirement plan, the majority use target-date funds.

These funds are typically made up of a couple of index funds.

You select the year you’d like to retire and buy a mutual fund with that year in its name, like Target 2035 .

In 2023 , index equity mutual funds had an asset-weighted average expense ratio of 0.05% , or just $5 for every $ 10,000 invested.

Target-date funds, however, are a tad pricer than a single equity index fund.

Their fees reflect the asset-allocation monitoring by a fund manager on top of the fund expenses.

VR Score

81

Informative language

81

Neutral language

31

Article tone

informal

Language

English

Language complexity

32

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

Source diversity

2

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