Saving for retirement is hard. For many, investing that money may be even harder. Target-date funds have become a nearly $5 trillion industry by largely solving that problem.
The "target date" is the year of an investor's expected retirement (but it could apply to any other long-term savings goal, such as college tuition). The funds have a heavier weighting in stocks early on, when the investor is younger and can better weather losses. They shift gradually over time to bonds, when safety becomes more important.
