There are many different Vanguard Target retirement funds to choose from, and it can be difficult to decide which one is best for you. Here is a closer look at some of the most popular Vanguard Target retirement funds to help you make a decision.
The Vanguard Target Retirement 2045 Fund is a good choice for investors who have a long time horizon until retirement. This fund has a relatively aggressive asset allocation, with 80% of assets in stocks and 20% in bonds. The stock portion of the portfolio is invested in a mix of domestic and international stocks. The bond portion is primarily invested in high-quality government bonds. This fund has an expense ratio of only 0.15%.
The Vanguard Target Retirement 2050 Fund is another good choice for investors with a long time horizon. This fund has the same asset allocation as the 2045 Fund (80% stocks, 20% bonds), but the stock portion of the portfolio is invested exclusively in domestic stocks.
The bond portion is again primarily invested in high-quality government bonds. This fund also has an expense ratio of only 0.
The Vanguard Target Retirement Income Fund is designed for investors who are already retired or who have a short time horizon until retirement. This fund has a more conservative asset allocation, with 40% of assets in stocks and 60% in bonds. The bond portion is again primarily invested in high-quality government bonds.12%.
Which Vanguard Target Retirement Fund Is Best?
So which Vanguard Target retirement fund is best? It depends on your individual circumstances and investment goals. If you have a long time horizon until retirement, either the 2045 Fund or the 2050 Fund would be a good choice. If you are already retired or have a short time horizon until retirement, the Income Fund would be a good choice.
