Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Choosing a Target Retirement Fund
Old 06-17-2008, 03:10 PM   #1
Recycles dryer sheets
 
Join Date: Jun 2008
Posts: 51
Choosing a Target Retirement Fund

I tried searching for an answer to my question but couldn't find what I was looking for. If this has been asked and answered before I apologize and would appreciate if you would point me to the thread.

But, here is my question: I have a question about choosing Target Retirement Funds. If I planned to retire at age 65 I would choose the Target Retirement 2025 Fund. But if I wanted to retire early, say age 55, should I choose the 2015 fund instead or should I still pick the 2025 fund? Why or why not?
__________________

__________________
Chaos Abounds is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-17-2008, 03:14 PM   #2
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Chaos, the years are arbitrary but the closer the target date to today, the more conservative (bonds:stocks) the asset allocation. You should target the closest target fund to your retirement date if you are happy with the allocation Vanguard has arbitrarily set for that fund.

Regardless of your actual chosen retirement year, if you want to be a little more aggressive than Vanguard "thinks" you should be, then choose a target year farther out than your actual retirement, and vice versa for more conservative.
__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 06-17-2008, 03:18 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,446
Quote:
Originally Posted by Chaos Abounds View Post
I tried searching for an answer to my question but couldn't find what I was looking for. If this has been asked and answered before I appologize and would appreciate if you would point me to the thread.

But, here is my question: I have a question about choosing Target Retirement Funds. If I planned to retire at age 65 I would choose the Target Retirement 2025 Fund. But if I wanted to retire early, say age 55, should I choose the 2015 fund instead or should I still pick the 2025 fund? Why or why not?
I would think you would stay with 2025 even if you retire early. You are buying a fund like this more for your age than the actual date of retirement. Retiring at 55 means you need your money to work for you for many years, therefore you need more in stocks in the early years and less as you grow older. Thats the theory anyway.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 06-17-2008, 04:31 PM   #4
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Someone on this board suggested laddering the Target Retirement funds starting with the year you're planning to retire and then out from there, e.g., 1/3 in 2015, 1/3 in 2025, 1/3 in 2030 (or something like that).
__________________
Bestwifeever is offline   Reply With Quote
Old 06-20-2008, 10:35 AM   #5
Recycles dryer sheets
 
Join Date: Jun 2008
Posts: 51
Thanks for the info. (Sorry, I should have said that earlier)
__________________
Chaos Abounds is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Paritioned portfolios of Target Retirement 20XX for each decade of retirement chinaco FIRE and Money 11 03-15-2007 06:06 PM
Withdrawals From Target Retirement Type Fund yakers FIRE and Money 14 02-17-2007 08:01 PM
Target Retirement: Which Mutual Fund Co.? redduck FIRE and Money 9 01-29-2007 09:28 PM
Can't Prune a Target Fund Rich_by_the_Bay FIRE and Money 52 07-25-2006 06:40 PM
vanguard target fund windsurf FIRE and Money 25 04-26-2005 11:49 AM

 

 
All times are GMT -6. The time now is 07:32 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.