• Lifecycle funds are asset allocation funds in which the share of each asset class automatically adjusts to reduce risk as the desired retirement date approaches.

  • Life cycle funds are intended to be used by investors with specific goals that require capital at a set time.
  • For investors looking for a very passive approach to retirement, a life cycle fund may be suitable.
  • Legendary investor Benjamin Graham suggested that you adjust your investment in stocks and bonds based on market valuations, not your age.
  • Life cycle funds are based on the idea that young investors can handle more risk, but this is not always the case.