Find out about American Funds target date funds
Many investors are intimidated by the idea of selecting and maintaining a well-designed asset allocation for their retirement accounts. If this sounds like you, you might want to consider a target date fund.
American Funds target date funds at a glance
- The 11 funds in the American Funds Target Date Retirement Series® are designed around retirement dates that are spaced five years apart, ranging from 2010 to 2060.
- Each of the target date funds could serve as a single, diversified retirement investment.
- Each fund invests in a mix of American Funds — mutual funds managed with a long-term focus based on thorough research and attention to risk.
- Fund portfolios are managed and periodically adjusted over time. The funds have a more growth-oriented strategy when retirement is years away and a more income-oriented focus as the fund gets closer to its target date. The target date is the year in which an investor is assumed to retire and begin taking withdrawals.
- After the retirement date is reached, each fund will be managed for 30 years to pursue income, capital conservation and some growth.
Find out which target date fund might be right for you by using the table below.
|Choosing a target date fund
American Funds target date fund
|2058 and later||American Funds 2060 Target Date Retirement Fund®|
|2053-2057||American Funds 2055 Target Date Retirement Fund®|
|2048-2052||American Funds 2050 Target Date Retirement Fund®|
|2043-2047||American Funds 2045 Target Date Retirement Fund®|
|2038-2042||American Funds 2040 Target Date Retirement Fund®|
|2033-2037||American Funds 2035 Target Date Retirement Fund®|
|2028-2032||American Funds 2030 Target Date Retirement Fund®|
|2023-2027||American Funds 2025 Target Date Retirement Fund®|
|2018-2022||American Funds 2020 Target Date Retirement Fund®|
|2013-2017||American Funds 2015 Target Date Retirement Fund®|
|2012 and earlier||American Funds 2010 Target Date Retirement Fund®|
How your fund changes over time
The chart below illustrates the basic investment strategy of the target date funds. Find the asset allocation of your fund on the left. As you move to the right, you’ll see how the investment mix is expected to change over time.
For example, locate the 2025 fund at the top of the chart. The fund began with about 5% of its assets invested in bond funds. You can see how the portion of bond fund holdings could gradually increase over time.
Target investment allocation strategy
The allocations and target strategy are subject to change.
Although the target date funds are managed on a projected retirement date time frame, the fund’s allocation strategy does not guarantee that your retirement goals will be met. Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee’s discretion and will evolve over time. Underlying funds may be added or removed during the year. For quarterly updates of the underlying fund allocations, visit the target date fund details pages available on the Fund Overviews page.
Let a financial professional assist you
A financial professional can help you determine if a target date fund makes sense for you. Together, you can create a customized savings plan and assess your overall situation, including your other assets, specific financial needs and risk tolerance.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail risks, and they can fluctuate in price more than larger company stocks. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal in bond funds and for funds with significant bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks that are associated with the bonds owned by the underlying fund. Fund shares of the U.S. Government Securities Fund are not guaranteed by the U.S. government.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional or downloaded and should be read carefully before investing.