Investing in Vanguard Target-Date Funds is a good strategy for the passive investor that trusts their broker. At this time there are 11 different ones you can place your money in to help give you a secure financial retirement.
The right one for you will be determined by when you plan to retire. Each one is set up in 5 year increments that will give you a retirement window. These plans as a whole are invested in over 6000 different domestic stocks and bonds along with over 2000 in foreign markets. The exact make up of each one is different.
The approach these Vanguard Mutual Funds take is determined by how long before the investors are to retire. The fund that is set to for investors to retire in 2055 has the assets of the funds invested in an aggressive manner.
This is the VFFVX fund that has 87.94% of the assets in stocks along with 9.76% I bonds and 2.30% in short term reserves. The expense ratio of this fund is at 0.19%.
The 2010 fund is the VTENX has taken another more conservative strategy. It has the assets allocated with 47.88% in stocks, 51.57% in bonds and 0.55% in short term reserves. The expense ratio of this Vanguard Mutual fund is at 0.17%.
If you are investing in Vanguard target-Date Funds that fall between these two, you will notice the strategy is more conservative as you approach your retirement time.
For more reference about investments from Vanguard on this site please Vanguard Funds Rock.
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