I Hold Vanguard Target Retirement 2020, and I'm assuming that the fund will change it's AA fairly substantially in 2015 (not just a tweaking). However, I have been unable to determine exactly when that might occur. I will need to rebalance at year's end (will fall outside my 5% rebalance band) but am hesitant to do so if the glide path changes immediately in 2015.
Anyone have any insight into when this typically occurs?
K
Target Retirement Glidepath Timing
Re: Target Retirement Glidepath Timing
Target date funds don't hit the income level of 30% until 7 years after the date. TR2020, in 2020 will still be 50% stock. In 2015 it will be close to 60%. For this reason, you may have to select by allocations instead of date.
Here's the glide path...
https://advisors.vanguard.com/VGApp/iip ... re=2255250
Here's an interactive chart
https://investor.vanguard.com/mutual-fu ... rview/0682
Paul
Here's the glide path...
https://advisors.vanguard.com/VGApp/iip ... re=2255250
Here's an interactive chart
https://investor.vanguard.com/mutual-fu ... rview/0682
Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Re: Target Retirement Glidepath Timing
Thanks Paul. I guess thought that AAs for those had been static for the last few years, so assumed that there was going to be a bigger drop in stocks in TR 2020 as it moved to that 5 year period from retirement date.pkcrafter wrote:Target date funds don't hit the income level of 30% until 7 years after the date. TR2020, in 2020 will still be 50% stock. In 2015 it will be close to 60%. For this reason, you may have to select by allocations instead of date.
Here's the glide path...
https://advisors.vanguard.com/VGApp/iip ... re=2255250
Here's an interactive chart
https://investor.vanguard.com/mutual-fu ... rview/0682
Paul
Re: Target Retirement Glidepath Timing
The asset allocation changes gradually. There are no sudden jumps.