Target Date Funds:
America's #1 Retirement Investment
About 70% of 401(k) investors already own a target date fund — making it the most important investment most Americans will ever choose. Here's how they work, where they fall short, and the one small change that could be worth a million dollars.
See the Million-Dollar Fix →SIMPLE. AUTOMATIC. AGE-APPROPRIATE.
Target date funds (TDFs) are so compelling that they now capture more than half of all new retirement program contributions. It's easy to see why.
They're simple, automatic, and cheap. You select the fund closest to your retirement year — and it automatically invests in a broadly diversified, age-appropriate set of assets that shifts over time as you approach retirement.
"A target date fund is the closest thing the average investor has to a personal pension manager."
But target date funds aren't perfect. They're built one-size-fits-all, they're fundamentally conservative, and they have no tilt toward small-cap value — the asset class with the longest record of beating the broad market over decades.
In Boot Camp 9, Paul and Chris Pedersen show how one small change can transform your target date fund into something dramatically more powerful — without dramatically more risk.
One Small Change to Your Target Date Fund That Could Be Worth a Million Dollars
BC9: ONE SMALL CHANGE
KEY TAKEAWAYS
CALCULATORS, TABLES & RESEARCH
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