Purchasing a life-cycle fund is a "set-it-and-forget-it" approach to investing for retirement.

Question

Quizplus · Accepted Answer

A life-cycle fund is designed to automatically adjust its asset allocation mix as the investor approaches retirement. This means that the investor doesn't need to actively manage the fund, but can simply contribute to it regularly and let the fund manager handle the investment decisions. Therefore, it is a "set-it-and-forget-it" approach to investing for retirement.

Purchasing a Life-Cycle Fund Is a "Set-It-And-Forget-It" Approach to Investing