As Vanderbilt’s transition to our new streamlined retirement plan structure progresses, updates on “hot topics” and frequently asked questions are being shared in MyVU and MyVUMC.
Many Vanderbilt retirement plan participants have taken advantage of target date funds—including Vanguard Target Retirement, Fidelity Freedom funds and TIAA-CREF Lifecycle funds—for easy, one-step investing. Target date funds are designed to include a mix of assets, such as stocks and bonds, appropriate for your life stage. They are professionally managed to become more conservative over time as you near retirement age. All you need to do is select the fund for the year closest to when you will retire, and the fund managers take care of the rest.
Vanderbilt’s new retirement plan structure will continue to include target date funds. They are listed as Tier 1 funds in the investment lineup and include Vanguard Target Retirement funds. Here’s how you can elect this easy option:
Existing balances
- If you are already invested in Vanguard Target Retirement funds, your balances will transfer automatically with no action on your part.
- If you are currently invested in Fidelity Freedom funds or TIAA-CREF Lifecycle funds, your balances will transfer to the Vanguard Target Retirement fund managed for the same retirement year. See the Investment Mapping Matrix.
- Many closing funds will map to the Vanguard Target Retirement fund managed to align closest to the year you will turn 65. After the transition is completed, if you are planning to retire at a different age, you may wish to elect a different target date fund.
Future contributions
- You may elect to have future contributions directed to any Vanguard Target Retirement fund. Do this by registering for your Fidelity account and direct your future contributions.
- If you make no election for your future contributions, your money will be directed into the Vanguard Target Retirement fund managed to align closest to the year you will turn 65 by default. If you are planning to retire at a different age, you may wish to elect a different target date fund.
To learn more about target date funds and Vanderbilt’s retirement plan transition, visit the Retirement Plan Transition website.