Target Retirement Glidepath Timing

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fourniks
Posts: 137
Joined: Wed Dec 22, 2010 4:38 pm

Target Retirement Glidepath Timing

Post by fourniks »

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
pkcrafter
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Re: Target Retirement Glidepath Timing

Post by pkcrafter »

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
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.
Topic Author
fourniks
Posts: 137
Joined: Wed Dec 22, 2010 4:38 pm

Re: Target Retirement Glidepath Timing

Post by fourniks »

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
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.
555
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Re: Target Retirement Glidepath Timing

Post by 555 »

The asset allocation changes gradually. There are no sudden jumps.
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