Be confident your retirement fund is working as hard as you are.
When it comes to retirement savings, you want to feel confident that you're making the right choices. But you may not know where to start, or have the time it takes to build and manage a retirement portfolio. That's why Schwab offers competitively priced target date funds. Simply choose a fund based on your target retirement date, and we'll do all the rest. It's an all-in-one solution you don't have to manage or adjust.
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What makes target date funds different from other mutual funds is asset rebalancing based on your target date for retirement. As Charles Schwab Investment Management (CSIM) adjusts the fund for you over time, it helps you avoid snap decisions that can affect a savings plan, like buying when markets are rising or selling when they fall.
See how CSIM allocates your fund's assets over time.
Years before retirement.
A higher proportion of your assets are invested in equity to provide more growth potential, and the opportunity to build your assets and keep up with inflation. The specific allocation changes depending on how far away you are from your target date.
Years to retirement.
A higher proportion of your assets are invested in bonds and cash* investments to seek the increased stability and income you need in preparation for retirement.
Years in retirement.
Once your target date is reached, the assets in your fund continue to be invested more conservatively. The bond allocation increases and the stock exposure decreases to help protect your investment while still providing some opportunity for growth.
*Cash includes allocation to cash equivalents and money market funds. The target date is the date when investors are expected to begin gradual withdrawal of fund assets. For an investor planning to retire at age 65 in 2020, for example, the target allocation for the Schwab Target Index Fund will be approximately 40% equity, 56% fixed income, and 4% cash and cash investments (including money market funds). The fund will continue to increase its allocation to fixed income until the year 2040. In 2040, the fund will reach approximately 25% equity, 69% fixed income, and 6% cash investments (including money market funds).
We offer two series of mutual funds targeting retirement dates in five-year increments: Schwab Target Index Funds and Schwab Target Funds. Both are competitively priced to help more of your investment work for you.
All our target date funds offer:
- Diversification—all-in-one mix of investments
- Good value—competitive pricing
- Rebalancing—we do the work for you
- No investment minimum
Schwab Target Index Funds
Schwab Target Funds
We're here to help you get ready for retirement.