Courtesy Amy Temperley/Aging Is Cool Linda Levy jumped at the opportunity to attend Camp Meraki near Austin, Texas. As a kid she went to summer camp every year and later she worked as a camp nurse at multiple camps. The program, which was run by Aging Is Cool, an Austin, Texas-based group that organizes social and physical activities for retirees, was like the summer camps she attended as a kid in many ways. “Half of our elder campers were campers here back in the days of black-and-white photographs,” Brock said. “So we had a built-in audience of adults who wanted to come to camp.” Some of these summer camp programs targeting older adults are run by kid’s camps in conjunction with their youth programming, but others are organized by senior groups across the country during less busy times of the year. Aging Is Cool held its first session of Camp Meraki this summer for people over the age of 60. “We’ve just been overwhelmed by people reaching out and asking when they can come to camp,” Temperley said. Attending summer camp later in life isn’t just about participating in childhood activities. For Gloria Lloyd, a retired public school teacher who attended Camp Ocoee with Boomers Together, going to summer camp was also an opportunity to cross an item off her bucket list. The opportunity to make new friends especially rang true for Levy, who recently moved to Texas to be closer to family.
The Vanguard Target Retirement 2050 Fund (NASDAQMUTFUND:VFIFX) is a target date mutual fund that’s suited for those looking to retire in or around the year 2050. The Vanguard Group intended this fund to be a simple solution for investors looking to save for retirement, investing in several other Vanguard funds and changing its asset allocation over time to get more conservative as retirement approaches. With gradual shifts to the proportion of stocks and bonds in the portfolio, Vanguard Target Retirement 2050 doesn’t require much attention from its investors, letting you relax and prepare for a retirement 30 to 35 years from now.
What’s the Vanguard Target Retirement 2050 Fund’s objective?
The Vanguard Target Retirement 2050 Fund’s objective is to offer a diversified portfolio of stocks and bonds that’s consistent with the time horizon of the fund. Accordingly, the fund intends to reduce its stock allocation in the future in favor of more assets in bonds, helping to make the fund more stable when investors can’t afford the same level of volatility they can early in their lives. Asset allocation shifts continue beyond the 2050 target date for seven more years, and then, the fund shifts to the income-based objective shared by the Vanguard Target Retirement Income Fund.
Vanguard advises investors planning to retire between 2048 and 2052 to consider this fund. If you’re turning 30 now and want to retire at age 63, then the 2050 timeframe works perfectly.
What is Vanguard Target Retirement 2050’s asset allocation strategy?
Vanguard Target Retirement 2050 currently has an overall asset allocation of about 90% in stocks and 10% in bonds. That’s completely reasonable for a fund with a time horizon of 33 years before retirement, taking full advantage of more favorable long-term historical returns for stocks. Young investors have long enough to recover from any short-term market disruptions.
In particular, Vanguard Target Retirement 2050 has allocations to the following four Vanguard mutual funds:
Vanguard Total Stock Market Index Fund
Vanguard Total International Stock Index Fund
Vanguard Total Bond Market II Index Fund
Vanguard Total International Bond Index Fund