Target date fund
A fund that holds a stock and bond mix and shifts toward bonds as its year approaches.
Where it is explained in full
Workplace plans: the 401(k), the 403(b), and the TSP, from the first paycheck to the last. Everything a person needs to open one, fill it, hold the right things in it, avoid the traps, and carry it with them when they leave. Long on purpose, so that one page is enough.
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Words beside it
- bond fund
A pool of money collected from many investors that a fund company uses to buy a large number of different bonds at once. You own a small slice of that whole pool instead of one single bond.
- Emergency fund
Cash set aside for the unexpected, usually three to six months of expenses.
- Ex dividend date
Owners of the stock before this date receive the dividend; buyers on or after it do not.
- fund
A pool where many investors put money together so a manager can buy a large collection of investments on everyone's behalf. You own a small slice of the whole pool rather than any single investment directly.
- Index fund
A fund that holds the components of a published index in the same proportions, changing only when the index does.
- maturit date
The specific day when a borrower must pay back the full amount of a loan or bond to the lender. After this date the agreement is finished and you get your money back.
- maturity date
The specific day when a bond's loan period ends and the borrower must return the full amount they originally borrowed to you. Think of it like an expiration date on the loan agreement.
- Money market fund
A fund holding very short term debt; near cash, small yield.
Ask about Target date fund
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