Target date funds are professionally managed, diversified investment funds, meaning investing in a BlackRock LifePath Fund can provide an all-in-one investment solution at any age.
Each fund holds a number of underlying investments – from stocks to bonds, including U.S. and global markets, as well as real assets such as real estate and infrastructure – creating diversified funds with one main objective: helping to manage your investment risk throughout your working years and into retirement.
When you’re young and far from retirement, the investment mix is more aggressive to help your investments grow. As you approach retirement, the fund automatically shifts to a more conservative allocation with the goal of preserving your savings. When you arrive at your desired retirement date, the fund shifts to an investment mix to help you retain spending power through retirement.