Retirement PlanningLump Sum Distribution Death Distribution Social Security Contribution Percentage Definition Early Retirement Penalty Education IRA
Life Cycle Fund
A life cycle fund, also known as a target date fund, is a type of mutual fund that adjusts its level of risk according to the age of its owner. As the investor approaches retirement, the fund will gradually shift towards a more conservative investment strategy, reducing its exposure to stocks and increasing its holdings in fixed income assets. This recognizes the need for a lower risk profile for someone nearing retirement. Essentially, a life cycle fund is designed to align with an individual's changing investment needs as they progress through different stages of life.
Related terms
Understand the meaning and definition of Lump Sum Distribution in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Death Distribution in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Social Security in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Contribution Percentage Definition in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Early Retirement Penalty in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Education IRA in the context of stock market, trading, and investments.
MOREExplore other categories


