The Vanguard 2005 Target Retirement fund has, we were told, a 47% allocation to equities.

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That is the most conservative target retirement fund Vanguard offers. (Vanguard does, however, offer an income fund that invests 30% in equities.) Did we hear that right, we asked?

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For example, a 45-49 year old might choose the Target Retirement 2030 Fund which has 79% in equities.

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The company suggests investing in its Target Retirement 2030 Fund, which incorporates five different Vanguard funds in a mix designed to become less risky over time, so that it's more stable at the time you reach retirement age.

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Owning a retirement target date fund could throw off a balanced approach to your investments.

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By 2016, 55% of 401(k) participants will have their whole retirement accounts invested in a single target date fund, up from 24% last year.

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Another solution Vanguard and other mutual fund companies offer to retirement plans is target retirement funds.

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Structuring systematic withdrawals from a target date fund can be a straightforward strategy for creating retirement income for some investors.

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