Introducing Vanguard Target Retirement 2065 Fund

On July 12, we added a new fund to our Target Retirement Fund lineup—Vanguard Target Retirement 2065 Fund. This all-in-one fund is designed specifically for investors currently between the ages of 18 and 20 who want to think long-term but have other things, including bills and student loans, competing for their money and attention.

The fund’s asset mix (the mix of stocks, bonds, and cash in your portfolio) will gradually shift to fewer stocks and more bonds so it becomes more conservative as you move closer to retirement. The change is automatic, so you don’t have to worry about regularly rebalancing your portfolio. (Rebalancing is buying or selling assets in your portfolio to maintain a target asset mix that complements your investment goals, time frame, and risk tolerance.)

Enter a relationship you won’t regret.

Open an account

You’ve been introduced. Now what?

Get to know our newest target-date fund. Here are three potential benefits of investing in a Vanguard Target Retirement Fund that will make you want to commit for the long term:

1. Easily prepare for the future

You can open your account online in about ten minutes or add a Vanguard fund to an existing account. The minimum initial investment for Vanguard Target Retirement 2065 Fund is $1,000.

Opening the fund is easy. But what comes next—managing your money—is even easier. Use our website and mobile app to keep tabs on your investments and invest automatically.

Even if you’re starting to fall for Vanguard Target Retirement 2065 Fund, you may be wondering, “Why?”

Earnings potential

This hypothetical example does not represent the return on any particular investment and the rate is not guaranteed. The final account balance does not reflect any taxes or penalties that may be due upon distribution. Withdrawals from a tax-deferred plan before age 59½ are subject to a 10% federal penalty tax unless an exception applies.

Say you open an account with $1,000 and earn an average annual 6% return. You invest $100 a month until you retire in 2065. If you opened your account in 2035, you’d have over $103,669 in your account 30 years later (in 2065).

If you waited until 2045 to open the account (all other factors being equal), you’d have about $48,772 in your account in 2065. The ten-year delay in opening your account equates to a deficit of almost $55,000 in your retirement nest egg.

2. Get the most out of the money you save

Would you rather pay $2.31 per gallon of gas (the industry average*), or $0.44 per gallon (81% lower than the industry average)? This question is a no-brainer: $0.44 per gallon is a better deal.

The same goes for how much you pay for your investments. An expense ratio represents how much it costs to operate a mutual fund. Your fund’s expenses are deducted from its total value on a regular basis, and those expenses cut directly into your investment returns. (See how.) The industry average expense ratio for target-date funds was 0.68% in 2016, which is $6.80 a year for every $1,000 invested. Vanguard Target Retirement Funds had an average expense ratio of 0.13%, which is just $1.30 for every $1,000 invested—that’s 81% lower.**

3. Feel confident about your fund choice

To find the right target-date fund to partner with, you just need to know your current age or how many years you have until retirement. If you’re between the ages of 18 and 20, chances are you’ll have about 48 years until retirement in 2065 (assuming you’d like to retire between ages 66 and 71).

Our target-date funds were designed to keep pace with your life. Vanguard Target Retirement 2065 Fund offers a diversified portfolio that adjusts its underlying asset mix over time, so you can feel confident that the risk level of your portfolio will decrease as you approach retirement. In 2065 when you’re retired, your portfolio will seek to provide income and preserve the value of your hard-earned money.

Status: In a relationship until retirement

Vanguard Target Retirement 2065 Fund will be with you for the long haul, and you can trust Vanguard to always align its interests with yours. Now’s the perfect time to enter one of the best long-term relationships you may ever have.

*Source: AAA. National average regular gas price, accessed June 16, 2017, at

**Vanguard Target Retirement Funds average expense ratio: 0.13%. Industry average expense ratio for comparable target-date funds: 0.68%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2016.


Investments in Vanguard Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss.