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Target Retirement Funds - WHO WILL BUY THEM?
Old 04-06-2006, 11:50 PM   #1
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Target Retirement Funds - WHO WILL BUY THEM?

Who will buy Target Retirement Funds when they mature?

The interesting thing is, when these years come, say 2045 Target Retirement with Vanguard, and the year will be 2048 and I'm all happy and getting ready to sell my mutual funds and retire. WHO IS GOING TO BUY THOSE FUNDS THEIR if the Target Fund reaches its date or goes past

Maybe I'm not informed enough, but this has been bothering me
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Re: Target Retirement Funds - WHO WILL BUY THEM?
Old 04-07-2006, 12:37 AM   #2
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Re: Target Retirement Funds - WHO WILL BUY THEM?

Good question. The fund is just a collection of stocks and bonds. These all have a market value and can be liquidated by Vanguard at will. The fund itself is mearly a convenience that Vanguard makes available to you for a fee. i.e. you pay us 0.20%/year and we'll save you the trouble of buying all those little stocks and bonds.

When 2045 hits and shareholders begin liquidating fund shares, Vanguard will simply sell fund assets on the open market and send you the proceeds.

In short, nothing to worry about...
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Re: Target Retirement Funds - WHO WILL BUY THEM?
Old 04-07-2006, 12:56 AM   #3
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Re: Target Retirement Funds - WHO WILL BUY THEM?

Wheew!!! Thank You
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Re: Target Retirement Funds - WHO WILL BUY THEM?
Old 04-07-2006, 03:53 AM   #4
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Re: Target Retirement Funds - WHO WILL BUY THEM?

they convert to income generating funds at maturity
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Re: Target Retirement Funds - WHO WILL BUY THEM?
Old 04-07-2006, 08:02 AM   #5
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Re: Target Retirement Funds - WHO WILL BUY THEM?

Somewhere on the Vanguard's site they have a sliding pie chart which shows the Target funds asset mix becoming more conservative with time. Five years after say 2045 that fund will have the Income fund asset allocation.
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