Ask TheStreet: Glittering Gold

And while gold may not pay a dividend or have as many industrial uses as other metals like copper and steel, any central banker will admit that gold does have historical relevance as the currency of last resort. And in these uncertain times, any troubling geopolitical event -- say a terrorist attack or oil embargo -- also will boost gold's appeal.

What is the difference between "lifestyle" and "targeted maturity" funds? Best Regards, R.H.

Targeted maturity funds are basically a kissing cousin of "lifestyle" funds. With a lifestyle fund, an investor selects a fund of funds based on how much risk -- aggressive, moderate or conservative -- they wish to take at that specific point in their life.

Younger investors may opt for an aggressive fund composed of, say, 80% stocks and 20% bonds, because they have more time until retirement. When they grow older and approach retirement, however, they may decide to reverse those percentages by switching to a conservative lifestyle fund. It's worth noting that not all fund families offer the same asset allocation.

A targeted maturity, or target date, fund is typically for people who expect to retire in or near a specific "target" year. That target year is typically part of the fund's name, so the (VTTVX)Vanguard Target Retirement 2025 fund, for example, is obviously designed for people who plan to retire in or near 2025.

Like a lifestyle fund, a targeted maturity fund typically invests in several other mutual funds offered by same fund family. As the target year approaches, a targeted maturity fund typically adjusts its allocation in the underlying funds, gradually becoming more "conservative" by decreasing its stock fund holdings in favor of bonds.

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