This target-date fund offered by Charles Schwab invests in a diversified portfolio of underlying Schwab funds. The asset allocation strategy adjusts over time, becoming more conservative as the target retirement year of 2045 approaches. A hypothetical investor nearing retirement in 2045 would find this fund’s gradually decreasing equity exposure and increasing fixed-income allocation aligned with a typical glide path designed to reduce portfolio volatility as retirement nears.
Target-date funds simplify retirement investing by providing a professionally managed, diversified portfolio within a single fund. The automatic adjustment of the asset allocation over time removes the burden of frequent rebalancing from the investor. This feature can be particularly beneficial for individuals who prefer a hands-off approach to investing or lack the time or expertise to manage their portfolio actively. The historical performance of such funds generally reflects market conditions and the underlying asset allocation.
