Does Your Lifestyle Demand A Lifestyle Fund?

Whether you're juggling a hodgepodge of investments or just trying to decide among the offerings in your 401(k) plan, structuring a coherent portfolio can be a burdensome task--especially in today's volatile markets where it's easy to doubt your every move. But the mutual-fund industry has come up with a seemingly simple solution: so-called lifestyle funds. These are portfolios of stocks, bonds, and cash crafted for investors with a specific investment horizon and risk tolerance. You just choose one and let professional managers maintain their ideal mix of assets, making small shifts in response to the economic outlook, interest rates, and the financial markets.

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