How does a target-date fund actually work, and what are the fees?

A target-date fund is a single all-in-one fund built around the year you expect to retire, like a "2055 fund." It holds a mix of stock and bond funds and automatically shifts toward more bonds as the date approaches — this is called the glide path. You buy one fund and never have to rebalance; the fund does it for you. Fees vary widely: index-based target-date funds can cost around 0.08%–0.15%, while actively managed versions sometimes run 0.50% or more, which compounds against you over decades. Check the underlying expense ratio before assuming it's cheap. They're an excellent default for hands-off investors, especially inside a 401(k). Just know that two funds with the same target year can hold very different stock-bond mixes, so glance at the allocation. See wealthserene.com/assessments/investor-profile to confirm the mix fits you.