Voice over: Planning for retirement can seem overwhelming, but it doesn’t have to be.
A target-date fund can help simplify your retirement investing.
Here’s how they work:
Invest in the target-date fund closest to the year in which you think you’ll retire.
Unlike individual investments such as stocks and bonds, where you may need to invest across several funds to achieve a diversified portfolio, a target date fund seeks to provide broad market diversification in a single fund.
A target-date fund manager will balance the fund to a level of risk based on your age.
Typically, a target date fund will be weighted toward stocks when you are younger in order to maximize growth, then that balance will shift toward bonds as you approach retirement in order to help lower your investment risk.
PIMCO’s RealPath Blend Target Date Funds may help you on your path to build retirement savings, seek retirement income and help preserve retirement wealth by blending the best of two worlds: PIMCO’s active bond management with Vanguard’s passive stock investment, to try to maximize growth and reduce costs while managing risk in case of market downturns.
PIMCO’s RealPath Blend Target Date Fund is a convenient, comprehensive investment strategy that can help you on your path to your retirement goals.
Target Date Funds may appeal to investors who: Don’t feel confident selecting investments. Are concerned with the time required to manage their investments. Or, tend to make impulsive investment decisions.
It is possible to lose money investing in a PIMCO RealPath Blend Target Date Fund.
Be sure to fully evaluate the fund prior to investing.
Call-to-action: For more information, log on to your plan website to learn about how Target-Date Funds may be right for you
It is possible to lose money investing in a target date fund. Be sure to fully evaluate the target date funds available in your investment plan prior to investing.
Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative or by visiting www.pimco.com. Please read them carefully before you invest or send money.
A word about risk: Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Equities may decline in value due to both real and perceived general market, economic and industry conditions. Diversification does not ensure against loss.
Target Date Funds are designed to provide investors with a comprehensive retirement solution tailored to the time when they expect to retire and plan to start withdrawing money (the "target date"). Each Fund follows a target asset allocation schedule that changes over time to help reduce portfolio risk, increasing its exposure to conservative investments as the target date approaches. The principal value of the Fund is not guaranteed at any time, including the target date.
There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. © 2019, PIMCO
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY, 10019 is a company of PIMCO.