Why? I have heard this from people so I am hesitant to do it as well.
Too conservative? Not actively and well managed? Why don't you like them?
Target date funds have a lot of hands-on management. As a result, the expenses are higher than for standalone mutual funds. Guess who pays those high costs? You, that’s who. Since expense ratios are recognized as the best predictor of mutual fund performance, you shouldn’t take this point lightly.
Lifecycle (Target-Date) funds usually only tap into the funds of one fund family. Very few fund families excel in all areas. You may be better served by selecting the best funds from multiple fund families. Why restrict yourself?
Job One of any financial planner is to figure out a client's risk tolerance. Conservative investors will be slotted more into fixed income or money-market funds, while risk-lovers prefer to bet heavily on equities. Target-date funds, on the other hand, paint everyone of the same age with the same brush.
ETA: Vanguard Target Date funds have reasonable expense ratios though
This post was edited on 5/28 at 3:43 pm