Has recent market news has got you rattled? In response to jumpy markets, investors often consider a move to money markets or related cash investments. However, if you’re investing for a long-term goal, such as retirement, moving to cash may derail your progress and cause you to miss out on the next market upswing. What investments can help you keep on track and weather market turbulence?
Seek a Better Way to Manage Volatility
Many investors turn to target-date funds that carry an underlying mix of stocks, bonds and money market to help you better manage different market conditions. Additionally, these funds automatically downshift to less aggressive investments—meaning fewer stocks, more bonds—the closer you get to retirement.
Downshifting Risk – How Much? How Fast?
While target-date funds generally dial down risk, they don’t all do it the same way. They tend to vary in their glide path—the course the fund takes as your date approaches.
Don’t let market downturns steer you off course.
Learn how target-date funds work to help you ride out market ups and downs in our Financial FYI® Navigating to Retirement.
A target-date fund’s target date is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.
The opinions expressed are those of American Century Investments and are no guarantee of the future performance of any American Century Investments portfolio.
For educational use only. This information is not intended to serve as investment advice. Past performance is no guarantee of future results.