Schwab Target Date Funds So you can enjoy today We help you invest for your future
Schwab Target Date Funds All-in-one portfolio solution. More time for you. Schwab Target Date Funds are diversified mutual funds, managed according to a projected retirement date. Portfolio managers rebalance the funds to make them more conservative over time. This offers a wide range of advantages: Reduces common investing mistakes such as lack of diversification and failing to rebalance your portfolio. Frees your time to do more of what you love, without worrying about your fund allocation. Gives you the confidence of knowing the fund s asset allocation is professionally managed. Provides portfolio diversification to help balance risk and return. 2 Schwab Target Date Funds
Managed for a lifetime Target date funds are built with the expectation that you will start gradual withdrawals of fund assets on your target date, or within a designated date range, to begin covering retirement expenses. Your target date usually corresponds with a planned retirement at age 65. Schwab Target Date Funds are also designed to help properly allocate your investments through your retirement date and beyond. Schwab Target Date Funds 3
How do they work? Each fund will automatically become more conservative over time. Target Date 2060 Target Date 2055 Target Date 2050 Target Date 2045 Target Date 2040 Target Date 2035 Target Date 2030 Target Date 2025 Target Date 2020 Target Date 2015 Target Date 2010 Current Age 20 25 30 35 40 45 50 55 60 65...85 Accumulating for retirement... own more stocks At or near retirement... own more bonds, cash and cash equivalents Earlier in your life, the Funds will own more stocks later in life, the Funds will gradually own more bonds, cash and cash equivalents. 4 Schwab Target Date Funds
Balance. The key to your future. Target date funds are designed to help you avoid one of the most common investing pitfalls failing to adjust your portfolio for your changing financial needs over time. With Schwab Target Date Funds, portfolio managers reallocate the Fund s investment along what is called a glide path, from more aggressive to more conservative as the target date approaches and beyond, helping to reduce risk and prepare you for retirement. Years away Higher investment in equity for more growth potential Getting closer Move assets to more fixed income investments and cash and cash equivalents (including money market funds) for increased stability and income in retirement At retirement Approximate allocation of 40% equity, 60% fixed income ( including cash & cash equivalents) In retirement Continued conservative approach, with heavy fixed income investment and less equity exposure to manage risk but provide some opportunity for growth 20 years later The Fund will reach its most conservative allocation of approximately 25% equity, 75% fixed income ( including cash & cash equivalents) Your Fund s portfolio: Equity A wide selection of domestic and foreign equity funds that delivers broad diversification across market capitalization, investment styles, and geographical regions Fixed income Domestic and international fixed income funds, for higher income and principal stability relative to equities Cash and cash equivalents Designed to offer current income consistent with stability of principal and liquidity Equity 1 Fixed Income (including Cash and Cash Equivalents) 2 100% 90% 80% 70% Allocation 60% 50% 40% 30% 20% 10% Starting Allocation 95% Equity (Stocks) 5% Fixed Income (including Cash & Cash Equivalents) Target Date 40% Equity (Stocks) 60% Fixed Income (including Cash & Cash Equivalents) Final Allocation 25% Equity (Stocks) 75% Fixed Income (including Cash & Cash Equivalents) 0% -45-40 -35-30 -25-20 -15-10 -5 T 5 10 15 20 25 Years Before Target Date TARGET Years After Target Date ACCUMULATING FOR RETIREMENT NEAR RETIREMENT DATE IN RETIREMENT The values of the funds will fluctuate up to and after the target dates. There is no guarantee the funds will provide adequate income at or through retirement. 1 Equity includes Domestic Equity, International Equity, and Global Real Estate. 2 Fixed Income includes Intermediate-Term Bond, Inflation-Protected Bond, International Bond, Cash Equivalents and Short-Term Bond. Schwab Target Date Funds 5
Careful selection and unique diversification In addition to rebalancing the Fund s investment, portfolio managers maintain fund diversity to balance risk and return. Your contribution is invested in a selection of underlying funds, diversified by asset class, market capitalization, and global region. A range of strategies provides both diversification and sophistication. Schwab Target Date Funds Offer: Diversification all-in-one mix of investments Good value competitive pricing Rebalancing the fund does the work for you Low or no minimums Schwab Target Index Funds Primarily passive investments Low cost Composed of indexbased Schwab ETFs No investment minimum Schwab Target Funds: Passive and active investments Competitively priced Composed of funds from Schwab and third parties $100 minimum investment 6 Schwab Target Date Funds
Hitting the target. The right fund for you. Consider investing in the fund closest to your retirement date, and ensure that the asset allocation matches your risk tolerance, personal circumstances, and complete financial situation. It s always important to remain aware of your allocation and check in regularly so you can make updates as your circumstances change. Birth date range Prior to 1948 This fund may be right for you Target 2010 Fund 1948 1952 Target 2015 Fund 1953 1957 Target 2020 Fund 1958 1962 Target 2025 Fund 1963 1967 Target 2030 Fund 1968 1972 Target 2035 Fund 1973 1977 Target 2040 Fund 1978 1982 Target 2045 Fund 1983 1987 Target 2050 Fund 1988 1992 Target 2055 Fund 1993 & after Target 2060 Fund Asset allocations are for illustrative purposes only and subject to change. Actual allocation can vary. Please see the prospectus for the most current allocation. Schwab Target Funds 7
Getting started with a Target Date Fund. Get your retirement plan on target today with a Schwab Target Date Fund. Contact us Place your order or learn more about Schwab Target Date Funds: Call 1-877-682-6461 Visit schwabfunds.com Investors should carefully consider information contained in the prospectus, or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing. The funds are built for investors who expect to start gradual withdrawals of fund assets on the target date, to begin covering expenses in retirement. The principal value of the funds is not guaranteed at any time, and will continue to fluctuate up to and after the target date. Target date fund asset allocations are subject to change over time in accordance with each fund s prospectus. The advisor reserves the right to modify the glide path from time to time should circumstances warrant. The funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, market valuations, liquidity, prepayments, and early redemption. This information is not intended to be a substitute for specific investment planning advice. If specific advice is necessary or appropriate, Schwab recommends consultation with a qualified investment or tax professional. Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab Funds, and Charles Schwab & Co., Inc. (Schwab), Member SIPC, the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage Products: Not FDIC-Insured No Bank Guarantee May Lose Value 2018 Charles Schwab Investment Management, Inc. All rights reserved. REF (0118-898W) MKT32213-15 (01/18) 00194086