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In helping my retiring sister with her retirement financial plans, many posters recommended the use of a single targeted retirement fund, such as the Vanguard Target Retirement Fund 2005.
I understand the value of a targeted retirement fund for someone in their 30's, 40's, or even 50's. The fund starts out aggressive, and as they age, the fund automatically gets more conservative.
But, for someone AT retirment, I don't understand why such a fund would be better than any other conservative allocation fund, such as Vanguard Wellington (ignoring the difference that this targeted fund uses indexes while Wellington is active).
The Vanguard Target Retirement Fund 2005 fund won't be changing it's allocation much anymore, so wouldn't it behave just like a conservative allocation fund?
Thanks for everyone's help!
HBH
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