As you approach retirement, it’s important to have a plan in place to make sure that your nest egg lasts as long as you need it to. One option that you may be considering is a Target-date retirement fund, and Vanguard’s Target Retirement 2035 Fund (VTTHX) is one of the most popular options on the market. But is it a good fit for you?
When choosing a Target-date fund, it’s important to consider your own personal financial situation and investment goals. For example, if you’re closer to retirement age, you may want to choose a fund with a shorter time horizon so that you can more conservatively invest your money. Alternatively, if you’re younger and have a longer time horizon, you may be willing to take on more risk in order to potentially earn higher returns.
The Vanguard Target Retirement 2035 Fund is designed for investors who are planning to retire around the year 2035. The fund invests in a mix of stocks and bonds, with the asset allocation becoming more conservative as the Target date approaches. Currently, the fund has an asset allocation of approximately 90% stocks and 10% bonds.
One of the benefits of investing in a Target-date fund is that it takes the guesswork out of investing. You don’t have to worry about rebalancing your portfolio or making changes as your investment goals or risk tolerance changes over time. The fund manager will do all of that for you.
Another benefit is that Target-date funds are often very diversified, which can help to reduce risk. For example, the Vanguard Target Retirement 2035 Fund invests in over 7,000 different securities across dozens of different asset classes. This diversification can help to smooth out the ups and downs of the market over time.
So, is Vanguard Target Retirement 2035 Fund a good fit for you? It depends on your individual circumstances and investment goals.
If you’re looking for a simple way to invest for retirement without having to worry about making changes over time, then this fund could be a good option for you. However, if you’re looking for higher potential returns or more control over your investments, then this fund may not be right for you.
