Through Fund

You retire from a long career as a polisher at the toilet seat factory. You did it. You made it. All that saving and investing paid off.

Except...you've still got a long time to go. By the life expectancy tables, you've got a couple decades left to kick around before you finally check into the nursing home for the, um...final stay. As such, most of the money you have built up in your retirement accounts will stay invested for a while longer.

A through fund recognizes that. These funds automatically change the asset mix in the fund when an investor retires, maximizing return and minimizing risk for people about to enjoy their golden years.

These products exist in opposition to so-called "to accounts," also known as traditional target-date funds. They make asset mix changes until retirement, but at that point, they consider their mission done.

The through funds, on the other hand, keep going. They're meant to help you through retirement...not just to it.