Your Employer Knows Best, Perhaps Or perhaps not. More employers are moving employees out of their 401k investment options into target date funds. This is due to the misguided view that as someone nears age 65 they need to get more conservative because they have a shorter time horizon. This is nonsense, a 65 year old could easily live until 100 or beyond. Having most of their money in bonds yielding 4-5% in a rising interest rate environment is a good way to make sure that they run out of money.