Is a Single Vanguard Fund Enough to Invest for Retirement?
Vanguard has made its name by offering low-cost index funds that require little to no ongoing management on the part of the investor. This has helped the investing behemoth accumulate over $7.2 billion in assets under management -- a number steadily growing by the day.
Some of Vanguard's LifeStrategy Funds (as well as its target date funds) take investing to an entirely new level of simplicity. As we'll explore below, these funds offer an incredibly easy way for anyone to invest for retirement -- although they do come with a few minor drawbacks. On the whole, however, a single fund strategy appears to be completely acceptable for retirement savings.
Vanguard's LifeStrategy Funds are considered "funds-of-funds," which means that their underlying portfolios are made up of other Vanguard funds. LifeStrategy funds are tailored to specified levels of risk and reward, which in this case remain static (i.e., they don't change) as time goes on. This is unlike target date funds, which shift their risk profiles as investors age.
Source Fool.com
