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"So anyone investing in these funds, especially the farther-out years, needs to be prepared for a lot of volatility." Watch out for fee padding, he added.

"The gold standard is Vanguard, whose fees range from 0.14 percent to 0.16 percent," Stark said.

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"I would strongly argue that the target-date fund would do a much better job aligning with the investor's goals than the investor would do on their own," he said.