How Schwab Target Date Funds work hard for your retirement.

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.

Drag the slider along the timeline to watch assets rebalance.

  • Years before retirement
  • Target Retirement Date
  • Years in retirement
  • Years before retirement.
  • Years to retirement.
  • Years in 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.

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.

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 2010, for example, the target allocation for the Schwab Target Index Fund will be approximately 40% equity, 53.5% fixed income, and 6.5% cash and cash investments (including money market funds). The fund will continue to increase its allocation to fixed income until the year 2030. In 2030, the fund will reach approximately 25% equity, 65.6% fixed income, and 9.4% cash investments (including money market funds).

Take a closer look at Schwab Target Date 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

    • Primarily passive investments
    • Low cost
    • Composed primarily of index-based ETFs from Schwab
    • No investment minimums
  • Schwab
    Target Funds

    • Passive and active investments
    • Competitively priced
    • Composed of funds from Schwab and third parties
    • No investment minimums

Invest in a Schwab Target Date Fund

We're here to help you get ready for retirement.

Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges and expenses. Please read the prospectus carefully before investing.

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