Looking for a solid investment option? Check out the Vanguard Target Retirement Fund! In this video, I’ll break down what it is, how it works and why it might be the best decision you make with your money.
Timecodes:
0:00 – Intro
1:38 – Target Retirement Fund 101 – Why You Should Invest In Them
6:22 – Why You Should NOT Invest In Target Retirement Fund
9:12 – Investing In Vanguard Target Retirement Funds – Find Your Fund
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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed….(read more)
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Vanguard Target Retirement Fund: The Best Investment Decision You’ll Make
Investing money is a crucial step towards securing a financially stable future. However, with numerous investment options available in the market, finding the best one can be an overwhelming task. If you’re searching for a reliable investment strategy that takes care of all the investment decisions for you, look no further than the Vanguard Target Retirement Fund.
The Vanguard Target Retirement Fund is an investment plan designed to cater to individuals who are nearing their retirement age. Whether you’re 30 or 55, this fund can be tailored to suit your specific goals and timeline. It offers a diversified portfolio that adjusts over time to become more conservative as you approach retirement. This feature alone makes it a popular choice among investors.
One of the key benefits of the Vanguard Target Retirement Fund is simplicity. This fund eliminates the need for you to spend countless hours researching and managing various investments. Instead, you can rely on Vanguard’s team of expert financial advisors who actively manage the fund to ensure it aligns with your retirement goals.
The fund’s investment strategy is based on the principle of asset allocation. Vanguard spreads your investments across a diverse set of asset classes, including stocks, bonds, and other investment vehicles. This diversification helps mitigate risk and protect your portfolio from market volatility. As you get closer to retirement, the fund automatically adjusts the asset allocation to be more conservative, reducing exposure to riskier investments.
Low fees are another feature that makes the Vanguard Target Retirement Fund an attractive investment option. Vanguard is known for its low-cost approach to investing, and this fund is no exception. By keeping expenses minimal, more of your money can be invested, increasing your potential for long-term gains.
Moreover, the Vanguard Target Retirement Fund provides investors with a hands-off approach to investing. You don’t need to actively monitor the market or stress about making timely investment decisions. Vanguard’s team takes care of rebalancing your portfolio, ensuring that it remains aligned with your desired asset allocation.
For those who value flexibility, Vanguard offers a range of different target retirement date options. This allows you to choose a fund that closely matches your anticipated retirement date. You can start investing in the fund that corresponds to the nearest possible year and easily switch to a different target retirement date as your plans evolve.
Another noteworthy feature is Vanguard’s dedication to client education. They provide extensive resources, such as retirement calculators and online tools, to help you develop a better understanding of your investment goals and progress. Additionally, their customer service is top-notch, ensuring you have access to expert advice whenever needed.
In conclusion, if you’re looking for a hassle-free investment option that takes care of your retirement goals, the Vanguard Target Retirement Fund is the best decision you can make. With its simplicity, diversification, low fees, and expert management, this fund takes the stress out of investing and provides peace of mind. Start planning for your retirement today and let Vanguard help you secure a financially sound future.
What if the target date fund I am having is the default enrollment when my employer provided their 401K ? Is it still a good investment or should I add the option of including S&P 500 into my portfolio as well ? Since it is not like a tradition Vanguard account, not sure will a 401K work differently
I love the way you describe things so clearly!
REIT
i love you
Hi Tae huge fan. If I change my mind after investing in a TDF for 10 years and change my mind and want to convert this fund into something VTSAX or an ETF, is this considered abnormal? Or am I stuck having to sell this fund and purchasing another fund manually, etc
I'm curious about the expense ratio – Do you know if you are paying the expense ratio for each of the individual funds held within the target date funds IN ADDITION to the 0.08% for the target date fund? For example, within the Vanguard 2045 target date fund (VTIVX) there are 4 funds, each with their own expense ratio associated with them. Essentially, are you paying 0.08% on top of those fund expense ratios, or are those expense ratios already factored in to the 0.08%? I hope I'm explaining my question clearly. Thanks!
I also have the Vanguard Target Retirement 2025 but can't seem to remember how the 2025 was selected…plan on working till 65 which will take me to 2030…should I change i?
I have Vanguard target fund 2030 in my Roth but I want to be a more aggressive while I am working for the next 10 years. What growth fund should I consider including in this portfolio?
We learned the hard way to only invest in these target funds in a tax advantaged account like an IRA or 401k. My mom had one of these funds in her taxable brokerage account and was hit with a large tax bill because of allocation moves Vanguard made that triggered capital gains. We no longer use the target fund, but rather purchase the underlying funds directly and mirror the allocation strategy.
My 2025 Vanguard Retirement Fund shows +2.28% since 12/08/2019 which is better than nothing and better than many of my associates have realized this year. However, it is a bit harrowing when one begins to think that the old process of blending stocks with bonds for safety may actually no longer be a viable strategy…well…but wait a minute…for a guy like me, who really doesn't desire to track his investments every day, let alone every week…it works….so far 😉
Target funds are just a marketing gimmick. Even the Thrift Savings Plan for federal employees has them.
Great advice, appreciate it very much. I have a target date fund and a S&P 500 fund in my 401k, I believe that the target date fund is good for my diversification.
What does "invest regularly" mean…Can you just do a one time investment or is it better to invest once a year or once every 5 years?
Mr Kim, I'm confused. Im investing in the S&P 500 on Robinhood. Is this the same as a retirement fund or do I need to add bonds? I'm 45 and would like to retire in 20 years. Im also investing in 3 individual stocks. Apple, Microsoft, and Amazon. Is this enough? Also, what percentage of my check do you think I should be putting in ea month?
Hi, my mom retired last year when she turn 65, when she contacted vanguard they told her to loan, I don't understand how vanguard works and what type of plan she has with vanguard. But I'm confused with why she has to loan when she's retired and I dont think she understands how vanguard works either. But when I ask her she say she knows what she's doing. Please need advise…
THE THREE FUND PORTFOLIO
The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with a Vanguard Target Date Funds then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but they have higher fees.
I’m 61, and planning on retiring at 67 or 70, which fund do you recommend Bro Kim?
All you need is VTSAX during wealth accumulation.
When you are close to retirement, exchange 5 to 10 years worth of expenses to VBTLX which will give you a more stable annual salary. Rinse and repeat. This will take care of sequence of return risk.
I see the value for these for some people, but they're simply not for us and our situation. We're 0% bonds or international and never will be. It's been 10+ years since international has come close to any US fund. I don't understand why people still focus on these.