Tier 1 – Target Date Funds
Investing Style: Diversified portfolio within a single fund that shifts its emphasis to more conservative investments as the year of retirement nears.
Target-date funds are designed for participants who prefer a single-fund solution that includes a mix of stocks, bonds, and short-term assets. Each of the funds creates a diversified portfolio within one fund, based on your expected retirement year (the “target date” of the fund) at age 65.
- Have built-in diversification—by investing in major asset classes such as bonds, US stocks, international stocks, real estate, and commodities—that endeavor to manage risk and performance over time.
- Are managed to become more conservative as the fund get closer to your retirement date, gradually shifting the fund’s investments from higher-risk to lower-risk investments.
- Are managed by professionals, whose objectives are to manage your portfolio, with the goal of creating a mix of risk and return appropriate to each stage of your life.
- Are one of the lowest-fee target-date funds currently available.
The target-date funds are offered in five-year increments. You invest in a fund according to your current age, as follows:
|If You Were Born…||Your Estimated Retirement Date (Assuming You Retire at Age 65)…||Your Target-Date Fund Is…|
|Before 1952||Before 2007||Vanguard Target Retirement Income Fund|
|1/1/1953–12/31/1957||2018–2022||Vanguard Target Retirement 2020 Fund|
|1/1/1958–12/31/1962||2023–2027||Vanguard Target Retirement 2025 Fund|
|1/1/1963–12/31/1967||2028–2032||Vanguard Target Retirement 2030 Fund|
|1/1/1968–12/31/1972||2033–2037||Vanguard Target Retirement 2035 Fund|
|1/1/1973–12/31/1977||2038–2042||Vanguard Target Retirement 2040 Fund|
|1/1/1978–12/31/1982||2043–2047||Vanguard Target Retirement 2045 Fund|
|1/1/1983–12/31/1987||2048–2052||Vanguard Target Retirement 2050 Fund|
|1/1/1988–12/31/1992||2053–2057||Vanguard Target Retirement 2055 Fund|
|1/1/1993–12/31/1997||2058–2062||Vanguard Target Retirement 2060 Fund|
|1/1/1998 – 12/31/2022||2063 -2067||Vanguard Target Retirement 2065 Fund|
|2003 and later||2068 or later||Vanguard Target Retirement 2070|