ETFs & Funds
Home›ETFs & Funds›Fund Industry›Suze Orman warns investors may be worse off in target-…
Suze Orman warns investors may be worse off in target-date funds
Target-date funds total nearly $4.9 trillion at the end of 2025, and the mix automatically shifts toward bonds through a “glide path” as retirement nears.
Suze Orman is renewing a warning that Americans relying on target-date retirement funds may be better off managing their investments on their own, according to a clip she posted online, republished by Yahoo Finance.
Orman said target-date funds work by automatically moving assets from stocks toward bonds as the expected retirement year approaches, using a “glide path” designed around that date and bundling multiple stock and bond funds into a single product.
The warning comes as target-date funds held nearly $4.9 trillion at the end of 2025, and Orman argued that bond funds can be particularly risky when interest rates rise because bond prices tend to fall.
The article also notes that the SEC has said funds with the same target year can still have different allocations, fees, and glide paths, while illustrating how different stock and bond weights could change outcomes after stock and bond returns.