Each Nationwide Target Destination Fund invests in a mix of asset classes tailored to your estimated retirement date − the date closest to the target date designated in the fund’s name. For example, the Nationwide Destination 2055 fund is tailored for investors planning to retire in, or close to, the year 2055.
Your retirement date is the date when you reach the approximate age of 65 years (or, in the case of the Nationwide Retirement Income Fund, the approximate age of 85 years). The target date is the approximate date when you may choose to retire and/or begin withdrawing from the Fund.
The principal value of each Nationwide Target Destination Fund is not guaranteed at any time, including at the target date designated in the Fund’s name. Over time, these funds are rebalanced to become more conservative as they near their target date. They will place a greater emphasis on investments that provide for income and preservation of capital and less emphasis on those offering the potential for growth.
The way assets are allocated in the years approaching retirement is called the “glide path.” Some companies design their products’ glide paths to stop rebalancing a fund's portfolio when the investor reaches his or her retirement date. At Nationwide, we continue rebalancing the fund’s portfolio up to 20 years beyond the start of your retirement to help protect against inflation and longevity risk.