How badly are target date retirement funds getting hammered?

[RusticBohemian]

For retired people with their savings in Vanguard target date retirement funds now in the retired phase (30.55% stocks, 68.23% bonds), how badly is inflation destroying their savings?

Not only are bond funds down and inflation making their returns look anemic, but the stock portion of the portfolio has also cratered.

Edit: Percent Correction

[shureShote]

I'd say badly since they are already missing 41.22% of their money.

[dandarc]

I'd say badly since they are already missing 41.22% of their money.

Thanks for the chuckle!

[wageslave23]

Looks vanguard 2050 target is down about 15% from a year ago and 20% from its high.

[Ron Scott]

Not sure any of the broad indexes are “hammered”. I see correcting and volatility…which I think is why we get paid to be long-term equity investors.

[bmjohnson35]

Aside from cash, I am not aware of any safe havens right now.  Even cash isn't protected from inflation. Of course, bull runs can't last forever and bubbles eventually burst.

[shureShote]

Hopefully some people who hold TDFs in taxable have been able to ease their way out of some of their positions and get their portfolios in a little less risky tax situation.

If this market turns into a full blown bear, those that were ticked off at the high distributions last year are going to further be ticked at having their holdings down 15, 20, 30, or more percent. Nice one two punch.

[Villanelle]

Are the retirement phase funds really 70% bonds?  Wow.

[Turtle]

It just so happens that I can provide some real world data points on this question.

I inherited a 401k earlier this year and have just now gotten access to log in and view exact details.  Turns out 65% of it is in Target Date 2020 funds.  As pointed out above, that missed out on a lot of gains in the past two years.

However, as a comparison between my own employer 401k which is 100% stock related index funds, the inherited 401k is down only 2.4% for the year whereas my employer 401k is down 10.8%

In looking at the glide path data on the Target Date Fund, it does indeed go to only about 30% equities within 5 years.  Time to start dollar cost averaging in some fund transfers...

[Tempname23]

I just calculated my losses since the peak, I'm down 19.11%, I'm almost entirely in Total Stock Market Index Mutual Funds. But it doesn't matter, bonds are getting beat down, stocks are getting beat down and cash is losing to inflation.
 The old maxim of moving to bonds as you age has not been working.

[shureShote]

I just calculated my losses since the peak, I'm down 19.11%, I'm almost entirely in Total Stock Market Index Mutual Funds. But it doesn't matter, bonds are getting beat down, stocks are getting beat down and cash is losing to inflation.
 The old maxim of moving to bonds as you age has not been working.

Yeah, it’s a touch annoying to see the overall balance go down a bunch but yet AA remains just about the same.

[RusticBohemian]

I just calculated my losses since the peak, I'm down 19.11%, I'm almost entirely in Total Stock Market Index Mutual Funds. But it doesn't matter, bonds are getting beat down, stocks are getting beat down and cash is losing to inflation.
 The old maxim of moving to bonds as you age has not been working.

Yeah, it’s a touch annoying to see the overall balance go down a bunch but yet AA remains just about the same.

What's AA?

[NorthernIkigai]

Asset allocation.