Definition
A single fund that holds a full diversified portfolio and automatically shifts toward bonds as its labeled year approaches. The one-decision investing option, common as a 401(k) default.
Why it matters
The target-date fund made doing nothing a good strategy: one choice buys diversification, rebalancing, and an age-appropriate glide path forever. For most 401(k) savers it is the honest default.
Example
A 30-year-old picks the fund labeled 2060: it starts stock-heavy, rebalances itself, and drifts toward bonds as 2060 nears. Their entire investing maintenance is continuing to contribute.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.