2. Invest in a Target-Date Fund, and You’re Set
If you think it’s a solid plan to invest in a target-date fund, set it and forget it, and not need to worry about your investments again … think again. As your money grows, you’ll need to diversify more than a target-date fund can offer, said Nick Vail, co-founder and financial advisor with Integrity Wealth Advisors.
“Oftentimes, they don’t align properly with your goals as you age,” he said. “Also, your fund might be too aggressive or too conservative for you as time goes on. Are all investors alike? Do they all have the same risk tolerance? Of course not. TDFs have a place in investing, but they are not the be-all and end-all.”
