The VG 2065 is only 'conservative' on paper. There was a time, 20 or more years ago that it would also be true. The issue is that there is little, if any, upsi

The VG 2065 is only 'conservative' on paper. There was a time, 20 or more years ago that it would also be true. The issue is that there is little, if any, upside left in bond prices and they have also become far more correlated with equity returns. So if the stock market tanks, the current allocation of 9% of the 2065 tracking corp bonds (by bond fund) will likely also tank. How quick and far the eventual recovery is of course anyones guess (remember too bond mutual funds are not the same as owning individual bonds). My 2cent, non-advisor opinion: I would skip the target funds and instead pick an equity fund and allocation (ie, 80%) and put the balance in USFR or VRIG. You won't forsake much in the way of yield with far less downside risk. And unlike a bond mutual fund, floaters reset to current market rates - you won't be stuck with a portfolio filled with low coupon bonds if 5 or 10 years from now rates are at more historically normal levels.