Just made my first investment in my Target date fund for 2065! Saved up $1000 over the past several several months after opening my vanguard account and cant wait to see what comes from it!
Great advice and I like how you make things clear in a way new comers to investing can relate. When I started my 401k I was automatically enrolled in a 2055 Target Date Fund. I left it there while I researched and learned about investing. I keep the shares I built up and left it at 10%, then spilt the rest between a S&P 500 fund, a few growth funds and international growth funds with a real estate fund also. Last year I started investing outside my 401k after I did my research and got the $$$snowball rolling$$$
Thanks for sharing your experience. Which SP500, growth and International index fund would you recommend? I am in still early 30s and want to be more aggressive than staying on target retirement fund.
Thank you, I used to have a Target Date fund, and it was an aggressive one, but my coworker suggested I changed up my investments, a. nd honestly, I don't like the new strategy. Will be going back to target date. I retire in 2054, and I don't mind the allocation because I have another brokerage account that I control
This must be the 3rd time I've watched this video. Can't decide if I should leave my 401k under the target date fund or change to SP500. I plan to retire at 67 which is in 13 years. Make my life easy I think I should leave it as is and change to SP500 and some bond when I need to rolls over to the traditional IRA when that time comes.
I chose a target date fund for my 401k that's 5 years later than it's "supposed" to be to get more aggressive, but I have other accounts that I plan to hold more equities in for longer. If my 401k was my only account, I may have chosen to completely self manage the allocation.
@@AK-47ISTHEWAY Obviously. For the fund to be aggressive for longer _relative to your own life_ you choose a TDF that gets conservative later than our normally would for you
I believe they did that to compete with Charles Schwab's series of target date index funds. I have Schwab, but you gotta be careful because they have "normal" target date funds that invest in actively managed mutual funds and then their set of target date index funds that invest in low cost ETF's. For anybody reading this, if you want to go with Charles Schwab and invest in one of their target date funds, just make sure it says INDEX in it.
What if you are older and you haven't really saved for retirement. Can you start in your 40's and be more aggressive? Can you put money in that retirement fund to catch up to were you need to be come 65 or 70
TDF follows the modern portfolio theory (ironically build in the 50's... not so modern if you ask me). International equities are in there to create diversity, howerver since the 90's they move in tandem with the US market which doesn't provide that diversification anymore. Bonds, as a conservative option, have been loosing as much as the equity market in 22'. Remember, these funds lock your losses in order to get the new bonds at a better rate. TDF are "okay" but not the best way to manage your most important retirement saving plan.
Thanks for the explanation. I'm new to all this, but a question and scenario: If the S&P 500 seems to be performing a lot better than a Target Date fund (right now), couldn't it better to just invest in that, with dividend reinvestments over the next 25 years? If it's a long-term game, then you can withstand the potential volatility? Maybe I missed something.
I really like how you break this down especially for people like myself who are not investment savvy at all.😆 I am starting kind of late (47 years old) in the investment game and I just signed up with Vanguard but I'm not sure what account type to go with. I'm thinking that I should select a Retirement Investing IRA account instead of a General Investing account, but I'm not sure if I should select a traditional IRA or a Roth IRA and then going with VTSAX. Any suggestions would be very much appreciated!🙂
Hi there! My 401k from my employer is the jpmcb smartretirement 2055.. it has an expense ratio of 0.33%. Is that a high expense ratio? Should i move it all into s&p500?
Are target date funds aimed at returning the full sum in cash to you at the target date or do they allocate up to 100% in bonds at the target date to give you a regular payout?
Many say one million dollars is needed to retire. Many have retired with much less so far. They say it is important to decide how much will be needed to retire than develop a plan of action. Cost of living increase is why the amount needed to retire keeps going up.
Just made my first investment in my Target date fund for 2065! Saved up $1000 over the past several several months after opening my vanguard account and cant wait to see what comes from it!
Waste of money should’ve bought anything else
@@Sweetleaf2001to be honest they’re pretty good for beginners and a great way to get started on the market
What does your portfolio look like?
Great advice and I like how you make things clear in a way new comers to investing can relate. When I started my 401k I was automatically enrolled in a 2055 Target Date Fund. I left it there while I researched and learned about investing. I keep the shares I built up and left it at 10%, then spilt the rest between a S&P 500 fund, a few growth funds and international growth funds with a real estate fund also. Last year I started investing outside my 401k after I did my research and got the $$$snowball rolling$$$
Thanks for sharing your experience. Which SP500, growth and International index fund would you recommend? I am in still early 30s and want to be more aggressive than staying on target retirement fund.
@peterpark6563 Any just as long as they have low fees. You really can't go wrong with Vanguard, Charles Schwab, or Fidelity.
Thank you, I used to have a Target Date fund, and it was an aggressive one, but my coworker suggested I changed up my investments, a.
nd honestly, I don't like the new strategy. Will be going back to target date. I retire in 2054, and I don't mind the allocation because I have another brokerage account that I control
This must be the 3rd time I've watched this video. Can't decide if I should leave my 401k under the target date fund or change to SP500. I plan to retire at 67 which is in 13 years. Make my life easy I think I should leave it as is and change to SP500 and some bond when I need to rolls over to the traditional IRA when that time comes.
I chose a target date fund for my 401k that's 5 years later than it's "supposed" to be to get more aggressive, but I have other accounts that I plan to hold more equities in for longer. If my 401k was my only account, I may have chosen to completely self manage the allocation.
Target date funds do not get more aggressive. They get more conservative as you reach your senior years.
@@AK-47ISTHEWAY Obviously. For the fund to be aggressive for longer _relative to your own life_ you choose a TDF that gets conservative later than our normally would for you
@@AK-47ISTHEWAYthat's what OP just said. It's more aggressive for a longer period (upfront)
I hold VFIAX in my 401k and VTSAX in my ROTH.
I'm planning to switch to a target date fund approximately 5 years before retiring.
As of February 2022, the expense ratios for Vanguard Target Date Funds dropped to .08%. Even better!
I believe they did that to compete with Charles Schwab's series of target date index funds. I have Schwab, but you gotta be careful because they have "normal" target date funds that invest in actively managed mutual funds and then their set of target date index funds that invest in low cost ETF's. For anybody reading this, if you want to go with Charles Schwab and invest in one of their target date funds, just make sure it says INDEX in it.
What if you are older and you haven't really saved for retirement. Can you start in your 40's and be more aggressive? Can you put money in that retirement fund to catch up to were you need to be come 65 or 70
TDF follows the modern portfolio theory (ironically build in the 50's... not so modern if you ask me). International equities are in there to create diversity, howerver since the 90's they move in tandem with the US market which doesn't provide that diversification anymore. Bonds, as a conservative option, have been loosing as much as the equity market in 22'. Remember, these funds lock your losses in order to get the new bonds at a better rate. TDF are "okay" but not the best way to manage your most important retirement saving plan.
Lets not forget the fee for TDFs and or expense ratios. Most S&P 500 etfs have 0.03% while a tdf can have 0.75%
forced to invest in TDF in many employers. its good if you have no financial literacy and will help many in retirement vs nothing.
Better than O money
Thanks for the explanation. I'm new to all this, but a question and scenario: If the S&P 500 seems to be performing a lot better than a Target Date fund (right now), couldn't it better to just invest in that, with dividend reinvestments over the next 25 years? If it's a long-term game, then you can withstand the potential volatility? Maybe I missed something.
I really like how you break this down especially for people like myself who are not investment savvy at all.😆 I am starting kind of late (47 years old) in the investment game and I just signed up with Vanguard but I'm not sure what account type to go with. I'm thinking that I should select a Retirement Investing IRA account instead of a General Investing account, but I'm not sure if I should select a traditional IRA or a Roth IRA and then going with VTSAX. Any suggestions would be very much appreciated!🙂
Hi there! My 401k from my employer is the jpmcb smartretirement 2055.. it has an expense ratio of 0.33%. Is that a high expense ratio? Should i move it all into s&p500?
Are target date funds aimed at returning the full sum in cash to you at the target date or do they allocate up to 100% in bonds at the target date to give you a regular payout?
No they don't put everything in bonds at the target date. Just a higher percentage, with less in growth.
Great info; thank you, sir
Great info. Thank you 🙏🏼
Very nice video...thanks for sharing
Can one split 401k to 2 target date funds? One conservative one risky- 50/50. And is it a good idea?🤔
I did 100% of my investments to more diverse/risky funds, and 100% of the company match to more conservative funds
TDF are not risky so if you want a risky fund, you shouldn't be in TDF for the other half
I think you can 😮
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I stay away from Target funds, too conservative for us! We stick with Total Stock Market funds or single stocks of strong companies.
VTSAX is all a long term investor needs.
Just pick a farther away Target date.
Same here 😊😂
How can a 40 year old with only 15k in 401 get to retirement at 60.
Many say one million dollars is needed to retire. Many have retired with much less so far. They say it is important to decide how much will be needed to retire than develop a plan of action. Cost of living increase is why the amount needed to retire keeps going up.
To much bond allocation
👍👍👍