Target-Date Funds Aren’t the Retirement Bull’s-Eye

The Vanguard Group published recently its “How America Saves 2018” report, a trove of data on more than 4.9 million retirement savers in 401(k)s, 403(b)s and other defined-contribution plans.

My colleague Barry Ritholtz has already noted many of the highlights, but one detail deserves more exploration: Target-date funds are taking over retirement accounts.

The numbers are astonishing. Roughly half of retirement savers invested their entire account in a single target-date fund in 2017. None did so as recently as 2004. Vanguard estimates that number will grow to 70 percent by 2022.

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