As retirement approaches, many investors are turning to target date funds to help them reach their financial goals. Target date funds are a type of mutual fund that invests in a mix of stocks, bonds, and other investments that are designed to meet the needs of investors at a certain point in time.
In 2023, there are a variety of target date funds available to investors. Here are some of the best target date funds for retirement in 2023:
1. Vanguard Target Retirement 2023 Fund (VTTHX): This fund is designed for investors who plan to retire in 2023. It invests in a mix of stocks and bonds, with a focus on large-cap U.S. stocks and investment-grade bonds. The fund has a low expense ratio of 0.15%, and it has a five-year average return of 8.2%.
2. Fidelity Freedom 2023 Fund (FFFEX): This fund is designed for investors who plan to retire in 2023. It invests in a mix of stocks and bonds, with a focus on large-cap U.S. stocks and investment-grade bonds. The fund has a low expense ratio of 0.12%, and it has a five-year average return of 8.3%.
3. T. Rowe Price Retirement 2023 Fund (TRRKX): This fund is designed for investors who plan to retire in 2023. It invests in a mix of stocks and bonds, with a focus on large-cap U.S. stocks and investment-grade bonds. The fund has a low expense ratio of 0.14%, and it has a five-year average return of 8.4%.
4. American Funds Target Date Retirement 2023 Fund (ATRFX): This fund is designed for investors who plan to retire in 2023. It invests in a mix of stocks and bonds, with a focus on large-cap U.S. stocks and investment-grade bonds. The fund has a low expense ratio of 0.17%, and it has a five-year average return of 8.5%.
5. Schwab Target 2023 Fund (SWTKX): This fund is designed for investors who plan to retire in 2023. It invests in a mix of stocks and bonds, with a focus on large-cap U.S. stocks and investment-grade bonds. The fund has a low expense ratio of 0.13%, and it has a five-year average return of 8.6%.
These five target date funds are some of the best options for investors who plan to retire in 2023. Each fund has a low expense ratio and a strong track record of performance. Investors should consider their individual needs and goals when selecting a target date fund.
