Target Date Solutions

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Target Date Solutions

Extended periods of stock market gains can lead some investors to forget that volatility can rear its ugly head at any time, destroying wealth more quickly than it is made.

Some target-date funds (TDFs) may be especially vulnerable to a bout of volatility. As equity markets have risen over the past several years, many TDFs with large exposures to stocks, steep glide paths and rapidly descending equity allocations have benefited. But markets don’t just run in one direction. Faced with a downturn, these TDFs could see significant declines, causing participants to abandon their investments and leading to years of lost income for those in or near retirement.

Three Key Design Features of One Choice® Target Date Portfolios

Risk-managed approach

Investors face a number of risks, including market, interest rate, inflation and running out of money in retirement. Because performance can't be predicted, we constructed the portfolios to balance multiple risks to increase the likelihood investors achieve their retirement goals.

Broad diversification

The portfolios hold a mix of stock, bond, and money market investments with a focus on providing greater wealth accumulation from a smoother ride through erratic markets. While diversification does not insure against a loss, it may help reduce downside risk.

Disciplined active management

Our Multi-Asset Strategies team handles the day-to-day details of selecting, overseeing and rebalancing underlying funds. We believe active security selection is the best way to improve return potential. It also helps limit the downside during periods of market stress.

The Glide Path

The glide path shows how we decrease the exposure to stocks over time to help reduce volatility.

  • Glide Path

    A chart visualizing the changing underlying allocations based on timeframe as the target date approaches.

    We start out with a growth-oriented asset mix focused on building your assets. We gradually shift to investments that help diversify your portfolio while still maintaining some growth potential. Our goal is to provide the greatest opportunity for your client's money to last throughout retirement.

    A One Choice Target Date Portfolio's target date is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.

    Each target-date One Choice Target Date Portfolio seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio's allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and money market instruments.

    Find a Target Date

    One Choice Target Date Portfolios based on a birth year and a retirement age of 65.

    Birth Year Retirement Date at Age 65 One Choice Target Date Portfolio
    1993 and after 2058 and after One Choice® 2060 Portfolio
    1988 - 1992 2053 - 2057 One Choice® 2055 Portfolio
    1983 - 1987 2048 - 2052 One Choice® 2050 Portfolio
    1978 - 1982 2043 - 2047 One Choice® 2045 Portfolio
    1973 - 1977 2033 - 2037 One Choice® 2040 Portfolio
    1968 - 1972 2038 - 2042 One Choice® 2035 Portfolio
    1963 - 1967 2028 - 2032 One Choice® 2030 Portfolio
    1958 - 1962 2023 - 2027 One Choice® 2025 Portfolio
    1953 - 1957 2018 - 2022 One Choice® 2020 Portfolio
    Before 1954 Before 2019 One Choice® In Retirement Portfolio

    Portfolio Performance

    Diversification does not assure a profit nor does it protect against loss of principal.

    Money Market Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

    The performance of the portfolios is dependent on the performance of their underlying American Century Investments' funds and will assume the risks associated with these funds. The risks will vary according to each portfolio's asset allocation, and a fund with a later target date is expected to be more volatile than one with an earlier target date.

    Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

    Diversification does not assure a profit nor does it protect against loss of principal.