The Vanguard Target 2025 Fund is a target-date fund designed for investors who plan to retire around the year 2025. The fund’s asset allocation gradually becomes more conservative as the target date approaches, with a higher allocation to stocks early on and a higher allocation to bonds later on. This is designed to help investors potentially maximize their returns while also reducing their risk as they near retirement.
Target-date funds are a popular choice for retirement planning because they offer a simple and convenient way to invest for retirement. Investors can choose a fund with a target date that corresponds to their expected retirement year, and the fund will automatically adjust its asset allocation over time. This can help investors stay on track with their retirement savings goals without having to make any active investment decisions.
