Funds in the Target Retirement Array are commonly called Target Date Funds. These are made up of an asset mix of stocks, bonds, and other investments and automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed. Through the Willamette University Defined Retirement Contribution Plan, you have access to the Vanguard Target Retirement Fund Investor Shares.
Vanguard Target Retirement Funds Investor Shares
Some investors prefer a simple approach to choosing and managing their investments. The Willamette University Defined Retirement Contribution Plan will offer the Vanguard Target Retirement Funds Investor Shares. Each of these funds is a professionally managed, age-based, diversified mix of stocks, bonds, and short-term investments—all in one fund.
Just pick the fund with the date closest to the year you expect to retire—that's the fund's target date. The fund will automatically adjust from higher risk to lower-risk investments as it approaches its target date and moves beyond.
- Vanguard Target Retirement 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065 Fund Investor Shares
Ticker: VTXVX, VTWNX, VTTVX, VTHRX, VTTHX, VFORX, VTIVX, VFIFX, VFFVX, VTTSX, VLXVX
Gross expense ratio: 0.13 - 0.15% as of 01/31/2020
Objective: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation.
Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of year in the name of the fund (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.
Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available.
Short-term redemption fee: None
Who may want to invest: Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time.
This description is only intended to provide a brief overview of the mutual fund. Read the fund's prospectus for more detailed information about the fund.
- Vanguard Target Retirement Income Fund Investor Shares
Ticker: VTINX
Gross expense ratio: 0.12% as of 01/31/2020
Objective: The investment seeks to provide current income and some capital appreciation.
Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors currently in retirement. Its indirect bond holdings are a diversified mix of short-, intermediate-, and longterm U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; inflation-protected public obligations issued by the U.S. Treasury; mortgage-backed and asset-backed securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar.
Risk: The fund is subject to the volatility of the financial markets, including that of equity and fixed income investments. Fixed income investments carry issuer default and credit risk, inflation risk, and interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Principal invested is not guaranteed at any time, including at or after retirement. Additional risk information for this product may be found in the prospectus or other product materials, if available.
Short-term redemption fee: None
Who may want to invest:
Someone who is seeking an investment option intended for people in retirement and who is willing to accept the volatility of diversified investments in the market.
Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option and looking primarily for the potential for income and, secondarily, for share-price appreciation.
This description is only intended to provide a brief overview of the mutual fund. Read the fund's prospectus for more detailed information about the fund.