Target date funds have delivered

bee

If target-date funds were a country’s gross domestic product, it would be the fifth-largest in the world, ranking behind the US, China, Germany, and Japan. Between inflows and market appreciation, assets have climbed at an astounding compounded rate of more than 30% annualized over the past 15 years. We explore these market trends and more in the recently released 2025 Target-Date Strategy Landscape

M* Article
https://morningstar.com/funds/target-date-funds-have-delivered-investors

yogibearbull

Barron's online has a caution on the target-date funds (TDFs; AUM $4 trillion) that are popular in retirement plans. Many TDFs have gotten riskier. They lowered fixed-income allocations during the low-rate environment to increase equity allocations, but this may backfire in a market downturn.
https://www.barrons.com/articles/target-date-funds-risk-rise-e9f22391?refsec=retirement&mod=topics_retirement

Sven

The year of 2022 was one the rare moment both stocks and bonds to fall due to rapid rise of interest rates. The asset correlation failed despite the broader diversification on stocks and bonds. The magnitude of loss was in double digits in the teens. For those who are approaching retirement, there may not be enough time to fully recover.

529 college saving plans use similar asset allocation funds that have their glide path. As parents it is crucial to keep track of the withdrawal time horizon and interest rates. Most if not all the funds should be in money market before the tuition bills showing up.