For many investors who are saving for retirement, a target-date fund is the biggest component of their portfolio.
If your investments are in a 401(k) or similar retirement plan, you may not have a choice of fund companies. Your only choice may be the target year…as in do you want a 2055 fund, a 2060 fund, or something else?
But if you’re looking for a target-date fund for an IRA, you can choose not only your target date, but the fund company itself. How you make this choice can matter a lot.
This is a quick guide for shopping.
I think the most important factors to look for, roughly in this order,…