This Retirement Investing Tool Might Actually Be Working
A financial innovation that's paying off—for now
Finally some good news for workers saving for retirement.
Photographer: Scott Eisen/BloombergThis article is for subscribers only.
For a decade, a new kind of mutual fund has been taking over Americans’ retirement portfolios.
The target-date fund is designed for people with no knowledge of investing. You pick the fund closest to the year you expect to retire—the Vanguard Target Retirement 2030, for example—and the fund does the rest. Containing a variety of stock and bond funds, the all-in-one funds gradually and automatically get less risky as retirement approaches.