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Target-Date Retirement Funds
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Everybody knows you’re supposed to diversify and rebalance your portfolio every year. But not everybody is a financial professional. Most people don’t even have the time to make those kinds of decisions. That’s okay.

A target-date retirement fund is one of the simplest ways to help keep your savings on track. Just pick the date you plan to retire. Investments in the fund you choose are typically automatically adjusted as you age, maximizing your growth potential and minimizing unnecessary risk.
 
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The Details
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Just like mutual funds take the guesswork out of diversifying, target-date retirement funds generally rebalance the fund’s investments automatically.

Let’s take a look. When you buy a target-date retirement fund, you buy it based on what year you expect to retire. In the beginning, the investments are more focused on growth. As you get closer to retirement, the fund’s investments are usually gradually adjusted to take less risk and preserve the money you’ve got.

All this re-adjustment is done automatically, with the goal of not having to worry about your portfolio being too aggressive or too conservative from year to year. It also helps protect your money from the ups and downs of the stock market without sacrificing the potential to grow.
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Why They're a Good Idea
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Target-date retirement funds are a simple way to plan for your future. All you need to know is when you plan on retiring. They also:

  • Make sure your investments have potential to grow, but without taking unneeded risks
  • Keep your investment balanced based on how close you are to retirement
  • Are managed by professional fund managers
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Factors to Consider
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Target-date retirement funds could be a good choice for you if:

  • You’re concerned about your portfolio being too aggressive or too conservative
  • You want to put saving for retirement on auto-pilot
  • You’d like professional management that will adjust the fund’s investments over time
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Common Questions
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What if I'm already retired?
You can still invest in target-date retirement funds. If you pick a date in the past, the fund has a more conservative ratio of stocks, bonds, and real-estate investment trusts (REITs) that’s designed for people in retirement.

What If I don’t know exactly when I’ll retire?
Each fund targets a retirement range—typically a five or ten year span. If you have an idea which range you fall into, you can choose based on that. If you still need help, an Allstate financial professional can help you determine a reasonable date to plan for.
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You should carefully consider the investment objectives, risks, charges and expenses of mutual funds before purchasing shares or investing money. Additional information about these and other subjects can be found in the mutual fund prospectus. To obtain a prospectus, please contact your Allstate Personal Financial Representative. Please read the prospectus carefully before purchasing shares or sending money.
Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC, Main Office: 2920 South 84th Street, Lincoln, NE 68506, 877-525-5727.
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