# Target-Date Fund

*Saving & Investing — Finicade finance glossary*

A target-date fund is a single fund that holds a whole portfolio and automatically shifts from stocks to bonds as a chosen retirement year approaches. It's the default in most workplace pensions because it solves allocation, diversification and rebalancing in one product for people who will never adjust anything. The trade-offs are that the glide path is set for an average person rather than you, and that holding one alongside other funds quietly undoes its design.

**Also known as:** lifecycle fund, target date retirement fund, 2065 fund

**Related terms:** [Glide Path](https://finicade.com/glossary/glide-path), [Asset Allocation](https://finicade.com/glossary/asset-allocation), [401(k)](https://finicade.com/glossary/401k), [Rebalancing](https://finicade.com/glossary/rebalancing), [Diversification](https://finicade.com/glossary/diversification)

Source: https://finicade.com/glossary/target-date-fund