Vanguard Target Retirement Funds

June 8, 2007

The Semi-Annual Report for Vanguard’s target retirement funds 2030 – 2050 came in the mail today. Our retirement funds aren’t in target accounts but we have some money for our son in the 2030 Fund for when he’s all grown up and ready to take on the world.

I flipped over to the 2045 Retirement Fund to see how our money would be allocated if we were invested with the fund. The assets are 71.7% US Stock Funds, 18% International Stock Funds, 10% Bond Fund, and .03% Other Assets and Liabilities. The specific funds are listed below:

– Total Stock Market Index Fund (72%)
– European Stock Index Fund (10.6%)
– Total Bond Market Index Fund (10%)
– Pacific Stock Index Fund (4.6%)
– Emerging Markets Stock Index Fund (2.8%)

Compared to the 2045 Fund our current allocation is a little more heavily weighted in Europe and less so in the Pacific Rim. We have more exposure to real estate and higher return/higher risk, high-yield corporate bonds.

It seems to me the biggest benefit of putting our money into the target fund would be time saved I wouldn’t have to spend managing the money across separate investments & accounts. I think if we keep on track and avoid these 10 Retirement Pitfalls we should be just fine.


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Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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