From Cynthia Scott of OMC Financial Services:

Should you avoid Target Retirement Mutual Funds?

>>Target date funds are mutual funds that have a stated retirement date in the future, for example 2025, 2030, etc. and are allocated between stocks and bonds, including emerging and international markets

>>The allocation between stocks and bonds is determined by the retirement date of the fund; the farther out the date, the more stocks the mutual fund owns as retirement approaches the allocation becomes more conservative

>>Similar to age-weighted mutual funds often used in 529 Plans.

>>Designed to be allow an individual to choose a mutual fund based upon when they  anticipates retiring

>>Target retirement mutual funds are passive investing since do not take into account market conditions and the allocation cannot be changed

>>In 2008, target mutual funds could not protect investors because they could not change their allocation between stocks and bonds