Discover How LifePath® Funds Work to Help You Save for Retirement
Understanding how LifePath funds work can help you make the right decisions about your financial future.
The LifePath fund you choose is closely monitored and rebalanced by BlackRock Fund Advisors (BFA) in an effort to help maximize returns for a given level of risk. You can invest your assets in a LifePath fund and feel confident that you're invested in major asset classes. This helps you manage market volatility and get the diversification you may need.
How Do LifePath Funds Change Over Time?
If you follow each LifePath fund over time, the investment mix changes to reflect the changing risk tolerance for each stage of your life. For example, if the current year is 2015, and you have 25 years until when you want to begin withdrawing from your retirement account, the LifePath 2040® Fund may be best suited to your investment needs.
Follow the graphic below to see how LifePath funds work. The LifePath 2040 Fund will be gradually rebalanced over time to reflect the asset allocation composition similar to the LifePath 2030® Fund, then continue to be rebalanced to reflect a composition similar to the LifePath 2020® Fund, and finally result in the asset allocation composition for the LifePath Retirement Fund in the year 2040 — the year when you plan to begin withdrawing your money.
The above chart depicting how LifePath funds work is a hypothetical example for illustrative purposes only.
Investing involves risk, including potential for loss.
LifePath Funds are target-date portfolios whose investment objectives are adjusted over time to be more conservative as the target date (date the investor plans to start withdrawing their funds) approaches. The principal value of the fund(s) is not guaranteed at any time, including at the target date.
Diversification does not assure a profit or protect against loss.
An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Not FDIC Insured
- No Bank Guarantee
- May Lose Value