Changes To Target Date Funds (TAG 401K)

Steve Hulett / March 6, 2015

401k plan / one comment

The Vanguard Target Date Funds, which most Animation Guild 401(k) participants are using, will be changing their investment lineups in coming months.

Right now, the Target Date Funds stock allocations are invested 70% in Total U.S. Stock Market and 30% in International Stocks. By the end of 2015, that will change to

60% U.S. stocks
40% International stocks.

The new allocation will bring Target Date funds closer to the actual world market, which is (approximately) 50% U.S. and 50% everything else.

As for bonds, the current allocation is: 80% Total Bond Market (U.S.), and 20% Total International Bond. The newer lineup will be

70% U.S. Bond
30% International Bond.

The intent is to bring more diversification to the Target Date portfolios, which these changes do. The costs of the TAG 401(k) Target Date Funds will remain low.

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