August 6, 2008
USAA Rolls Out New Suite of Retirement Funds
United Services Automobile Association, a diversified financial services company, has unveiled a new family of five Target Retirement Funds.
United Services Automobile Association (USAA) said that these new funds are designed to simplify the investing process for retirement and provide value with costs that are 47% below the latest comparable Lipper category expense ratio average.
The funds' investment strategy is based on investing and managing risk against specific retirement dates, gradually becoming more conservative as the fund approaches maturity. USAA life, investment and retirement products are available to non-USAA members.
The new mutual fund options include: USAA Target Retirement 2050; USAA Target Retirement 2040; USAA Target Retirement 2030; USAA Target Retirement 2020; and USAA Retirement Income.
The Target Retirement Funds are comprised of underlying USAA equity and bond funds. Using the new funds, USAA members are able to invest for retirement without the need to actively monitor and refine their investment portfolios, according to the company.
The minimum investment to open an account is $3,000, or $1,000 for individual retirement accounts.
Chris Claus, president of USAA, said: "Our collection of Target Retirement Funds will make it easier to plan for the future, and will encourage long-term investing and diversification. Our members will benefit from this addition to our comprehensive suite of financial planning and investment products and services."