Vanguard Target Date Fund 2025

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Nerdicus
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Vanguard Target Date Fund 2025

Post by Nerdicus »

I am interested in opening up a Target Retirement 2025 Fund because of it's 70/30 stock and bond allocation. Yet since Target Dates funds have a glide path, would there be anyway to keep it at it's current allocation for next 20 years or so? I remember reading somewhere on the blog of person mentioning that they roll theirs back every 5 years to keep their current allocation. Is this at all possible? Please advise. Thanks!
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LAlearning
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Re: Vanguard Target Date Fund 2025

Post by LAlearning »

Yes it will glide on its own.
Yes change it when the next fund in line gets to where you want it.
Depends on if in taxable or not.
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Topic Author
Nerdicus
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Re: Vanguard Target Date Fund 2025

Post by Nerdicus »

LAlearning wrote:Yes it will glide on its own.
Yes change it when the next fund in line gets to where you want it.
Depends on if in taxable or not.
That's the thing though. How do you change it. Do you move the fund and buy shares in the target date fund which is 5 years prior?
stlutz
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Re: Vanguard Target Date Fund 2025

Post by stlutz »

If you are looking for a constant allocation then the Life Strategy funds might be worth looking at.
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LAlearning
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Re: Vanguard Target Date Fund 2025

Post by LAlearning »

Nerdicus wrote: That's the thing though. How do you change it. Do you move the fund and buy shares in the target date fund which is 5 years prior?
You sell it and buy the new fund (an exchange).
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berntson
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Re: Vanguard Target Date Fund 2025

Post by berntson »

stlutz wrote:If you are looking for a constant allocation then the Life Strategy funds might be worth looking at.
+1 This is what you want. The LifeStrategy growth fund is a fixed 80/20 and the moderate growth fund is 60/40. If you want 70/30, you can just split your funds between them.

If you are investing in a retirement plan that has target date funds but not life strategy funds, then you need to rebalance between target date funds to maintain a constant allocation.
pingo
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Re: Vanguard Target Date Fund 2025

Post by pingo »

50:50 LS Growth/LS Moderate Growth will give you 70/30.

You don't have to sell/buy to move money from fund to fund. At Vanguard, you want to look for the option to "exchange" funds. That'll allow you to move amounts directly from one fund to the other, or from one or funds into a new fund.
dickenjb
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Re: Vanguard Target Date Fund 2025

Post by dickenjb »

pingo wrote:50:50 LS Growth/LS Moderate Growth will give you 70/30.
This. Buying and selling the TR funds will incur CG tax in taxable and is too much work in tax advantaged.
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