Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

Target Date Funds: The Easiest Investment for Beginners

29 Aug 2025 · 1 min

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In this brief talk, Ramit Sethi recommends target‑date funds as a simple, low‑cost, diversified investment option for people who are unsure what to invest in. He explains that these funds automatically shift to a more conservative allocation as the investor ages, allowing a set‑and‑forget approach. Sethi advises viewers to locate a target‑date fund through any low‑cost brokerage such as Vanguard, Fidelity, or Schwab, selecting the fund whose target retirement year matches their expected retirement age (typically around 65). For a 25‑year‑old, he suggests choosing a Vanguard 2065 or 2070 fund. The message emphasizes that this strategy eliminates guesswork, day‑trading, and ongoing management headaches.

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Now, if you don't know what to invest in, one of the things I recommend for my family is something called a target date fund. It's low cost, it's diversified. It automatically gets more conservative as you get older. You set it once, move on with your life. How do you find a target date fund? You go to any low-cost brokerage— Vanguard, Fidelity, Schwab— pick the target date fund with the year that you plan to retire, usually around the age of 65. So if you're 25 now, you would pick the Vanguard 2065 fund or 2070 fund. That's it. No guessing, no day trading, no headaches.