How can the vanguard target retirement income fund provide me with income?
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Written on: 02.12.2009 [21:37]
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Jorge
Jorge
Topic creator
Posts: 1
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I was given a list by my financial advisor of different ways that I can help keep myself afloat once I retire. With only a few years left I want to make sure that I have covered all the options and know what I am going to do. The vanguard target retirement income fund was one of the suggestions and after the research I have done it seems to be very reputable and well known but I am unsure as to how it actually works. I know it is something to do with Sticks and Bonds but not sure how it can guarantee an income? |
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Written on: 06.12.2009 [10:15]
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Jake
Jake
Posts: 4
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I doubt anything to do with investment can be guaranteed but the vanguard target retirement income fund sets up a plan to improve your assets over a ten year period from the time you retire. It increases the amount you invest by using a mixture of bonds, stocks and short term reserves. The amount you invest alters over the 10years and at the end you usually end up with 75% in bonds. The minimum you can invest is $3,000 into each category ie $12,000. I suggest if your Financial Advisor gave you the list then he/she should know more about the fund and its return rates etc. Definitely seek more advice before deciding on one plan. |
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