Target Date Investing with the Vantagepoint Milestone Funds

Target date investing allows investors to select a single diversified fund that is designed to meet their investment time horizon. Each Milestone Fund invests in professionally selected funds that are 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 investors who are looking for an easier way to make retirement investing decisions.

You decide when you want to retire, choose the Milestone Fund closest to that year, and leave the rest to ICMA-RC’s investment professionals.

One Easy Choice.

The Milestone Funds are designed for investors 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.

Adjusting the Asset Allocation Mix.

As you move through the significant milestones in your life, your asset allocation should change along with you. That is why we have incorporated ongoing “aging” and “rebalancing” into the design of the Milestone Funds.

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 Investor Services staff at 1-800-669-7400.