The One-Stop Portfolio

The fund industry is confusing the issue, but for most people target-date funds are still the best way to save.

EDITOR'S NOTE: This article is from Kiplinger's Mutual Funds 2008 special issue. Order your copy today.

Target-date mutual funds are simply a great way to save for a long-term goal—especially retirement. The concept is simplicity itself: Choose the year you'll need the money, then pick the fund with the date closest to your target. So, for example, if you're 35 and plan to retire in 2038, you'd choose a fund with 2040 in its name.

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Bob Frick
Senior Editor, Kiplinger's Personal Finance