Costs of Vanguard Target Retirement Funds?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
dct1970
Posts: 13
Joined: Fri Mar 13, 2015 2:54 pm

Costs of Vanguard Target Retirement Funds?

Post by dct1970 » Sat Mar 14, 2015 3:04 pm

Target Retirement Funds have a stated ER. And the funds in them have a stated ER. If I invest in a Target Retirement Fund do I pay the ER of both the Target fund and the funds that make it up? Or do I just pay the ER of the Target Fund?

Thanks!

User avatar
runner9
Posts: 2035
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: Costs of Vanguard Target Retirement Funds?

Post by runner9 » Sat Mar 14, 2015 3:07 pm

Just the ER of the Retirement Fund.

User avatar
Toons
Posts: 13049
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Costs of Vanguard Target Retirement Funds?

Post by Toons » Sat Mar 14, 2015 3:09 pm

runner9 wrote:Just the ER of the Retirement Fund.
:thumbsup
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Geologist
Posts: 1195
Joined: Fri Jan 02, 2009 7:35 pm

Re: Costs of Vanguard Target Retirement Funds?

Post by Geologist » Sat Mar 14, 2015 4:01 pm

A good idea here would be to look at the prospectus, which explains all about expenses, among other matters. Since anytime you invest in a new mutual fund, you must certify that you have read the prospectus, it is a good idea to do so anyway.

User avatar
TomatoTomahto
Posts: 7751
Joined: Mon Apr 11, 2011 1:48 pm

Re: Costs of Vanguard Target Retirement Funds?

Post by TomatoTomahto » Sat Mar 14, 2015 4:20 pm

Geologist wrote:A good idea here would be to look at the prospectus, which explains all about expenses, among other matters. Since anytime you invest in a new mutual fund, you must certify that you have read the prospectus, it is a good idea to do so anyway.
Do you read every EULA (End User License Agreement) before clicking Agree, since agreeing certifies that you've read it? Yes? So you're the one!
Zero Net Carbon by 2019.

User avatar
hoppy08520
Posts: 2023
Joined: Sat Feb 18, 2012 11:36 am

Re: Costs of Vanguard Target Retirement Funds?

Post by hoppy08520 » Sat Mar 14, 2015 8:57 pm

TomatoTomahto wrote:
Geologist wrote:A good idea here would be to look at the prospectus, which explains all about expenses, among other matters. Since anytime you invest in a new mutual fund, you must certify that you have read the prospectus, it is a good idea to do so anyway.
Do you read every EULA (End User License Agreement) before clicking Agree, since agreeing certifies that you've read it? Yes? So you're the one!
Let's also remember that investors are constantly warned to look out for hidden fees, etc. TV programs and articles run all the time about opaque 401(k) fees. So investors are supposed to be skeptical and it's hard to know what to trust, and it's hard to know when the facts are in a prospects and when the facts are hidden. I tried multiple times to figure out what fees were in my 401(k) plan and I got ignorant and incorrect answers. Was I supposed to read the plan prospectus? I read everything I could but the fees were still hidden. To an novice it's can all seem the same. To the OP, I'm glad you asked.

livesoft
Posts: 62922
Joined: Thu Mar 01, 2007 8:00 pm

Re: Costs of Vanguard Target Retirement Funds?

Post by livesoft » Sat Mar 14, 2015 8:59 pm

I was reading a prospectus of a Fidelity fund the other day to a Fidelity CSR on the other end of the phone. He had to submit a "work order" to fix a mistake of Fidelity's for me. Sometimes it pays to read the prospectus. :)
Wiki This signature message sponsored by sscritic: Learn to fish.

Post Reply