Vanguard LifeStrategy Funds

June 9th, 2008  |  Published in Asset Allocation, Retirement  |  1 Comment

Lifecycle, Lifestyle, Target Retirement… and now LifeStrategy. Are these all the same things? Are they different? Is it just branding at work?

LifeStrategy is Vanguard’s trademarked name for a Lifestyle fund. If you recall the differences between a Lifestyle and a Lifecycle fund, a lifecycle fund is one that changes its asset allocation as time passes. A lifestyle fund, on the other hand, remains static and is like a snapshot in time of a lifecycle fund.

Vanguard added four LifeStrategy funds – Conservative Growth, Growth, Income, and Moderate Growth. The Conservative Growth Fund is 20% short term reserves, 30% bonds, and 50% stocks. The Growth Fund is 0% short term reserves, 10% bonds, and 90% stocks. So you can see, the Growth Fund is significantly more aggressive than the Conservative Growth Fund.

It’s essentially the same thing as a Lifestyle fund, simply wrapped in a different name.

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The 156th Carnival of Personal Finance is available at PT Money and my post on Naming Beneficiaries on Retirement Plans was included.

  

Responses

  1. Ron says:

    July 18th, 2011 at 3:31 pm (#)

    “It’s essentially the same thing”

    So this really is just about marketing. That’s OK is you can show me a benefit with your funds.