Overview

Securities generally fall into one of three asset classes: short-term reserves, bonds, and stocks. Each one involves different risks and potential returns. You can mix different types of investments to come up with the combination of risk and potential return that's right for you. For details about each asset class, see the Investment Glossary.

You may choose funds from the plan's current investment options. For fund fact sheets of each investment option, click the fund name.

If you don't make an investment election, your savings will be invested in the Vanguard Target Retirement Trust Plus with the target date closest to the year you will reach age 65. Vanguard Target Retirement Trusts Plus serve as the plan's default option.

Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date.

Fund restrictions
There are certain restrictions you should know about, as follows:

All investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

Vanguard® Target Retirement Trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.