Target-date portfolios offered by BlackRock’s iShares are designed to simplify retirement investing. These diversified portfolios typically hold a mix of stocks, bonds, and other asset classes, automatically adjusting the asset allocation over time to become more conservative as the target retirement date approaches. For instance, a portfolio targeting retirement in 2050 would likely have a higher allocation to stocks in the present compared to one targeting 2030.
These investment vehicles offer a hands-off approach, removing the burden of regular portfolio rebalancing and asset allocation decisions from the individual investor. This “glide path” strategy aims to maximize growth potential during the earlier stages of an investor’s career and preserve capital closer to retirement. The historical performance of such strategies demonstrates the potential for long-term growth while mitigating risk as retirement nears. This approach can be particularly beneficial for individuals who lack the time or expertise to manage their investments actively.
