Approximating Vanguard target date funds

 seeks to help investors saving and investing in an employer provided plan who are interested in creating the immensely popular and often recommended three-fund indexed portfolio from  their retirement plan's fund selection menu.

If you are fortunate enough to have an employer plan that provides a wide selection of low-cost indexed target date retirement funds, along with a selection of low-cost asset class index funds, you will likely have little trouble exactly implementing the three-fund or (see note) a four-fund portfolio. At worst, the investor should succeed in closely approximating them.

However, many investors are forced to participate in plans that have high costs, plentiful fund offerings but few index fund options, and problematic target date retirement funds. In this environment, crafting the simple, low cost three-fund or four-fund portfolio can be daunting, especially for novice investors.