July 7, 2013
What is the value of investing in a Target Date Retirement Fund like the ones at vanguard.com?
What is the value of investing in a Target Date Retirement Fund like the ones at vanguard.com?
They deliver portfolio efficiency with a 100% index approach, maximize diversification and fiduciary comfort, minimize cost and oversight, help mitigate security and sector risk, are driven by stringent ongoing governance and oversight by tenured investment professionals, minimize manager risk and capacity constraints, offer transparency, and provide competitive costs.
Beautifully said, Katherine. Here is one more. They will rebalance for you over time. As you get closer to the date in which you will access the money, the fund will hold fewer stocks and more bonds and cash. You will not have to rebalance yourself. This all in one fund does it all for you!