Author Topic: Question about Vanguard Targeted Retirement Funds  (Read 1090 times)

theadvicist

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Question about Vanguard Targeted Retirement Funds
« on: June 28, 2018, 05:24:01 AM »
This may be a stupid question, but I'd really appreciate some thoughts.

I don't know much about investing, so following what I've read here and around the internet I put all my retirement savings in Vanguard Target Retirement Fund YYYY, where the Y is within 5 years of when I can withdraw under UK regulations.

Is there any danger to putting all my eggs in one basket with Vanguard? They are just investing in the market for me, right? So if they went under for some reason would my money be safe?

Like I say, probably a stupid question, but hey, I'd rather risk looking stupid than doing something stupid. Thanks guys.

SeattleCPA

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Re: Question about Vanguard Targeted Retirement Funds
« Reply #1 on: June 28, 2018, 07:43:13 AM »
I love the target retirement funds. If they'd existed when I started or early in my retirement saving, I'd have used them.

FYI, I have my parents using them... and my kids. My free downloadable book (see sig) explains why I think they rock.

neo von retorch

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Re: Question about Vanguard Targeted Retirement Funds
« Reply #2 on: June 28, 2018, 08:04:17 AM »
http://jlcollinsnh.com/2012/09/07/stocks-part-x-what-if-vanguard-gets-nuked/

Quote
But, if you are expecting a planet or even just a civilization ending event, Vanguard’s not for you.  But then, no investments really are.  You’re already stocking your underground shelter with canned goods.  Short of that, you can sleep just fine with your assets at Vanguard.  I do.

MustacheAndaHalf

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Re: Question about Vanguard Targeted Retirement Funds
« Reply #3 on: June 28, 2018, 10:28:13 AM »
Let me restate your question: what is the risk of only investing in every large company in the world?  That's what Vanguard's target date funds contain - a slice of the entire US stock market, and a slice of the entire international stock markets.

You can take a peek at the fund using a third-party website like morningstar.  In general, there's less secrecy and risk if your investment can be tracked by everyone, out in the open.

theadvicist

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Re: Question about Vanguard Targeted Retirement Funds
« Reply #4 on: June 28, 2018, 12:50:11 PM »
Thanks everyone!