Vanguard Target Retirement 2030 Fund Fact Sheet


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VANGUARD Target Retirement Funds – The BIG PROBLEM With Them!

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Which Target Retirement Fund Fits Your Timeline

Use our table to find the fund that best fits you.

Fund name

*Vanguard Target Retirement Funds average expense ratio: 0.11%. Industry average expense ratio for comparable target-date funds: 0.49%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2021.

Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

These fund suggestions are based on an estimated retirement age of approximately 65. Should you choose to retire significantly earlier or later, you may want to consider a fund with an asset allocation more appropriate to your particular situation.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Investments in bonds are subject to interest rate, credit, and inflation risk.

Vanguard Target Retirement 2030 Fund Review

Vanguard Target Retirement 2030 Fund Review: Many people put off their dreams until retirement. They plan to leave the working world and travel, garden, and spend time with their families. Perhaps they will buy a log cabin in the mountains or finally move to a place where it is sunny and warm year-round. All of those dreams depend on smart financial planning along the way. Careful saving and investing over many years is key to having the kind of retirement you want.

As your retirement years get closer, its critical to make specific financial moves to protect the funds you have been setting aside for decades. Instead of high-risk, high-reward stocks, its time to transition into reliable income-generating assets that wont tumble in value if there is a downturn in the market.

Selecting a specific mix of assets for your portfolio with optimal diversification and regular rebalancing is a full-time job and it requires a level of financial expertise that most people lack the time or interest needed to attain.

Instead, smart investors are choosing targeted retirement funds that consider your age and projected retirement date. Such funds do all of the complicated financial maneuvering for you with the aim of ensuring your savings is there for you when you are ready to live your dreams.

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What Is A 2030 Retirement Fund

Vanguard Total Stock Market Index Fund Institutional Shares Fact Sheet ...

A 2030 Retirement Fund like VTHRX has gradually reduced risk exposure over time. Unlike 2050 Retirement Funds, 2030 Retirement Funds no longer hold 90 percent of assets in stocks. The 2030 Retirement Funds are still working towards building wealth, so managers find a suitable balance.

Often, todays 2030 funds invest roughly 70 percent of assets in higher-risk equities, with 30 percent of assets in safer low-risk bonds. In the case of VTHRX, investors hold four underlying Vanguard funds that make up this mix.

As 2030 draws closer, that mix will continue to change, until eventually it mirrors the standard Target Retirement Income Fund. Retirement Income Funds are intended for those in the process of retiring or who are already retired, and they are designed to provide reliable income throughout the retirement years.

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A Portfolio That Adjusts As Participants Careers Progress

At Voya, our glide path relative to peers has a higher equity allocation for younger participants to build wealth and a lower equity allocation for participants near and in retirement to reduce risk in those critical years. Younger participants can afford to take on more investment risk in exchange for greater potential returns. However, in the later years, participants are more vulnerable to a market downturn, particularly the day they retire.

The Portfolio may periodically deviate from the Target Allocation, generally within the range of +/- 10% relative to the current Target Allocation. The sub-adviser may determine to deviate by a wider margin in order to protect the Portfolio, achieve its investment objective, or to take advantage of particular opportunities. This chart is for illustrative purposes only and may not reflect the current allocations of the Voya Target Solution Trust Series. This illustration is intended to show how the Voya Target Solution Trust Series transitions over time.

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Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.

How Vanguard Target Date Retirement Funds Work

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Vanguard Target Retirement Funds, a Target Date asset allocation option, are designed to take you through retirement.

The asset mix of each Portfolio is based on a target date. This is the expected year in which participants in a Portfolio plan to retire and no longer make contributions. A team of asset allocation professionals adjusts each Portfolios make-up over time to ensure a noticeable and steady shift from equities to fixed income in the years leading to retirement.

The Vanguard Target Retirement Funds are composed of passively managed funds and are managed to help retain your potential for growth, and aim to preserve the value of your assets at and after retirement.

As each Portfolio glides over time, its asset mix is adjusted. Looking at the image below:

  • Designed to take you through retirement.
  • Glidepath is designed to continue to generate income in the years after the retirement date.
  • The most conservative point on the glide path occurs 7 years after the retirement date.
  • Underlying portfolio is comprised of 100% index funds.
  • Vanguards embedded diversification approach provides balance against the natural ups and downs in the market.

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What Is Vthrx

The Vanguard Target Retirement 2030 Fund is one such option, designed especially for those who expect to leave the workforce between 2028 and 2032.

It is managed by Vanguard, a company that sets itself apart through a unique ownership structure. Instead of being owned by a handful of private parties, Vanguard funds are owned by its clients. That means less pressure to generate profits through fees, so you keep more of your money as compared to investors with other firms.

Vanguard has a collection of target retirement funds based on expected retirement dates ranging from right now to 45 years in the future. The longer you have to save, the more your fund leans towards riskier investments like stocks. Even if there is a market downturn along the way, 45 years is plenty of time to recover.

If, on the other hand, your retirement is imminent, your target retirement fund is more focused on income-based assets. These tend to be less volatile and present lower risk, ensuring your portfolio wont suddenly drop in value just as you are ready to leave the workforce.

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