Target-date funds adjust risk over time, but their limited flexibility can make them less suitable for complex retirement plans. SsCreativeStudio/Shutterstock
Target-date funds (TDFs) can be effective retirement savings vehicles for many investors.
TDFs are professionally managed portfolios often built with various mutual funds. They are designed to automatically adjust their asset allocation of stocks, bonds, cash and sometimes alternative investments to become more conservative as you reach the target date.
