Wall Street Journal: Vanguard’s New Retirement Fund Urges Investors to Think Waaaaaay Ahead

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Vanguard is courting young investors with its latest retirement fund that has a 48-year investment runway, writes Daisy Maxey for The Wall Street Journal.

Last month, the Malvern investment giant launched Vanguard Target Retirement 2065, geared toward 18-to-22-year-old investors who will start retiring in about 50 years. The 2065 fund is believed to be the first fund of this type, and is one of the longest inception-to-target date funds around.

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Target-date funds, which offer simple solutions for passive retirement investors, usually focus heavily on stocks. Over time, these funds usually adjust the asset allocations to a mix of stocks and bonds as the end-date approaches.

However, like Vanguard’s other Target Retirement funds, the 2065 Fund will only invest in broad-market Vanguard index funds. At this time, 54 percent of its assets are in Vanguard Total Stock Market Index Fund, 36 percent are in Vanguard Total International Stock Index Fund, and the rest is in other Vanguard funds.

According to John Croke, head of multi-asset product management in Vanguard’s portfolio-review department, the goal is to ensure that employers have a default investment option for their retirement plans.

Read more about Vanguard’s new retirement fund in The Wall Street Journal here, and check out previous VISTA Today coverage of Vanguard here.

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