How to Money · Monday, July 6, 2026
The discussion around target date funds highlighted their convenience but also potential drawbacks. While generally low-cost, some providers like Fidelity can have higher fees, and the funds' fixed timelines might be too conservative for investors with significant savings and a higher risk tolerance. Hosts suggested 'hacking' target date funds by choosing a later date for more aggressive allocation.
“The one downside though, of a target date fund is that they really invest based on your likely retirement date, and so they're based on the years like every five years, twenty three, twenty thirty five, twenty forty, that kind of thing, And considering how much you have saved up, you might have a bigger risk appetite.”
“And so if you don't necessarily need that allocation to shift over time where you're moving less from stocks and more to bonds than a target date fund could actually be a little too conservative for you.”
“I've seen some folks basically like target date fund hack, where if they like, if you know that you are willing to accept a little more risk instead of choosing say a twenty thirty five fund. If you know that you're going to retire in twenty thirty five, well instead looking at a twenty forty fund or twenty forty five And it's like another tick towards aggressive investing as opposed to what it is that they think or I love that you just use the term hack for that target date fund.”