Get new articles by email:

Investors Happy offers a free newsletter providing tips on low-maintenance investing, tax planning, and retirement planning.

Join over 19,000 email subscribers:

Articles are published every Monday. You can unsubscribe at any time.

Investing Blog Roundup: Are Target-Date Funds Good Investments?

When I speak with people who are early in their careers, by far the most common questions I get are:

  1. How do IRAs and 401(k) plans work, and
  2. Which fund(s) should I buy in my retirement accounts?

For question #2, target-date funds are always the first thing I bring up.

Christine Benz of Morningstar wrote recently that, “from where I sit, target-date funds have been nothing short of the biggest positive development for investors since the index fund.”

That’s my point of view as well. They’re not a good fit for every circumstance (most notably, they’re a poor fit for taxable accounts). But they are nonetheless, an absolute revolution of the investment industry, for the better of the client/investor.

Recommended Reading

Thanks for reading!

New to Investing? See My Related Book:


Investing Made Simple: Investing in Index Funds Explained in 100 Pages or Less

Topics Covered in the Book:
  • Asset Allocation: Why it's so important, and how to determine your own,
  • How to to pick winning mutual funds,
  • Roth IRA vs. traditional IRA vs. 401(k),
  • Click here to see the full list.

A Testimonial:

"A wonderful book that tells its readers, with simple logical explanations, our Boglehead Philosophy for successful investing." - Taylor Larimore, author of The Bogleheads' Guide to Investing
Disclaimer: By using this site, you explicitly agree to its Terms of Use and agree not to hold Simple Subjects, LLC or any of its members liable in any way for damages arising from decisions you make based on the information made available on this site. The information on this site is for informational and entertainment purposes only and does not constitute financial advice.

Copyright 2023 Simple Subjects, LLC - All rights reserved. To be clear: This means that, aside from small quotations, the material on this site may not be republished elsewhere without my express permission. Terms of Use and Privacy Policy

My Social Security calculator: Open Social Security