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REDDIT

When do target date funds start to become too low of a risk?

J
Mar 7, 2025 · 14:13

In my 401k and Roth IRA I have everything invested in a 2050 Target Date fund. I didn't know what I was doing when I opened these, so I took some advice from Reddit and went with Target Date funds that're the year I plan to retire.

When I was looking at my 401k the other day I did some looking around and saw what the target date fund is made up from and it says that 10% of it was in bonds, which I understand to be low risk low reward.

I'm wondering if I should just switch them all over to the s&p500 given I'm 25 years away from retiring, but I do like the idea that they become lower risk as I get towards retirement.