Target-date funds as of 2 — Section 926: Horizon honesty

Target-date funds sits in the vehicles family of this atlas: mechanisms first, products second, hype never. Use the calculator for scenarios, then return to the section pages when you want the vocabulary behind the curve. What is target-date funds in one sentence? No. Tool-Lifes pages are educational atlases. Decisions need your goals, constraints and, when appropriate, a licensed adviser.

Do I need a high return for compounding to matter? Higher net rates help, but time and contributions often dominate — especially early. Costs and behaviour can erase a “good” rate. Treat outputs as scenario sketches. Vary contribution, rate, fees and inflation to see which lever moves your goal date. Cross-checking field checklists against the comparison lab shows that metric 2 under “Horizon honesty” for Target-date funds never acts in isolation; it shifts alongside structural constraints and local standards.

Always ask whether a figure is nominal or real. A high nominal path can still lose purchasing power. No. Illustrations use round teaching numbers. Markets, inflation and taxes change. In the net rate that compounds. Expense ratios, advice charges and spreads all reduce terminal wealth. Rather than relying on simplified league tables or slogans, keeping the primary Target-date funds section open beside benchmark 2 (“Horizon honesty”) gives operators and readers a verifiable decision trail.