Charles Schwab & Co. said it has added a target date fund oriented toward retirement dates in 2050.
The San Francisco company announced Monday that it had added the Schwab 2050 fund to its suite of target date funds, the Schwab Managed Retirement Trust Funds.
The portfolios are designed specifically for retirement plan participants and managed by Charles Schwab Trust Co. They target retirement in 2010, 2020, 2030, 2040, and now, 2050. A sixth fund, the Schwab Managed Retirement Trust Fund - Income, is designed to provide income during retirement.
Each Schwab Managed Retirement Trust Fund is a portfolio diversified across asset classes and supported by relationships with 11 independent subadvisory firms. This open-architecture approach enables Schwab to manage the funds using investment advice from different subadvisers in different asset classes.
The investment allocations in the five target date funds become more conservative as the targeted retirement date approaches, with the goal of balancing risk and return. The income fund has a fixed allocation of 75% in bonds, stable-value instruments, and cash and 25% in stocks.
