Target Date Investing with the Vantagepoint Milestone Funds

Target date investing allows participants to select a single diversified fund that is designed to meet their investment time horizon. Each Milestone Fund invests in a professionally selected combination of funds that is believed to be appropriate for the time remaining until the “target retirement date.”

Each Milestone Fund invests in Vantagepoint Funds with each having a different degree of potential risk and reward. This approach provides built-in diversification among the underlying Vantagepoint Funds and asset classes, which can help reduce risk.

The Benefits

The Milestone Funds offer a potential solution for participants who are looking for an easier way to make retirement investing decisions.

Participants decide when they want to retire and then choose the Milestone Fund closest to that year. Once they have made their selection they can leave the rest to ICMA-RC's investment professionals.

One Easy Choice

The Milestone Funds are designed for participants who expect to retire and/or begin withdrawals around the target year in each fund’s name. For example, the 2020 Milestone Fund has a target date of 2020 and is designed for investors who expect to retire and/or begin withdrawals in or within a few years of 2020.

• Read more about how easy it is for participants to invest in the Milestone Funds

Adjusting the Asset Allocation Mix

As each participant moves through the significant milestones of their life, their asset allocation will change along with them. That is why the Milestone Funds incorporate ongoing “aging” and “rebalancing”.

The Milestone Funds are reallocated or “aged” to reflect an increasingly conservative asset mix as each fund approaches its target date. In this way, the overall risk is reduced as the time remaining until withdrawals becomes shorter.

In addition to automatic aging, we also rebalance the Milestone Funds. Automatic rebalancing ensures the Milestone Funds’ allocations remain on track.

For more information on the Milestone Funds consult the current Vantagepoint Funds Prospectus or call our Client Services staff at 1-800-326-7272.