You have the flexibility to select from investment options that range from more conservative to more aggressive, making it easy for you to develop a well-diversified investment portfolio.
Complete, ready-made portfolios
The Vanguard Target Retirement Funds offer “one-stop shopping”. They are low-cost Target Retirement Funds that correspond to a range of target retirement years or year in which you will turn 65, and automatically rebalance between stocks and bonds to become more conservative as you approach retirement.
Build your own portfolio
If you wish to create your own portfolio, you can choose a combination of investments from the Plan’s investment line-up listed below. Before you make any investment elections, you should become familiar with all of the investment options offered by the 457(b) Savings Plan.
- Four index funds, which invest in a diversified portfolio of investments designed to mirror a market index, such as the S&P 500. These funds permit you to create a custom portfolio with low fees that reflects market performance.
- Eleven managed funds, which are actively managed by a fund manager or team of managers. Those managers select the investments they think will deliver the best combination of risk and return. Boston University selected these managed funds based on performance and fees compared with other managed funds generally available on the market. These managed funds tend to have higher fees than the index funds.
You may change your investment mix for your 457(b) Savings Plan at any time.