Target Date Funds Let You Invest and Forget

Imagine this. You open your statement every month and decide to do an impromptu financial check up on your IRA. You go online and it takes you five to 10 minutes, at the most. You understand your investment, feel confident about your choice and confirm that you are on the right track to a successful retirement.

Or, perhaps, you look at your portfolio and decide you'd like to buy a second home in the next 10 years. You know that saving it in a regular money market account will not grow it quickly enough, but you don't know where else to put it.

What if I told you there was one type of investment that fits both these scenarios? Does it sound too good to be true? It isn't. The good news is that almost every mutual fund company offers one: target date mutual funds, also known as life cycle funds. ...