Target Date Funds | Are They A Good Investment?
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- เผยแพร่เมื่อ 17 ต.ค. 2024
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Our Rich Journey - Target Date Funds | Are They Good Investments?: Did you know that the majority of US companies automatically enroll their employees in target date funds in their 401(k)-type plans? If you've been interested in target date funds, if you're enrolled in a target date fund, or if you want to know our thoughts on whether a target date fund is good for those pursuing financial independence and retiring early - this video is for you (HINT: We never invested in target date funds!)! In this video - we discuss the pros and cons of target date funds and we detail our reasoning as to why we never invested in target date funds on our road to financial independence and retiring early. Thanks for watching!
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Hey Fire family. I’ve had a target day fund since I started working with my company and in your last video you dropped a hint, so I decided to check it and check ytd returns and how much was in bond and stocks 😟 let’s say it was not what I expected and on top of that I was paying 0.65% on every $1000 dollars and it was not invested in index😕 long story short we got an index now for 0.05% on every $10.000. Thanks guys for keeping us on our toes . Keep spreading the fire 🔥🔥🔥
Wow! You ROCK!!! That is so cool that you looked into your investments and, as a result, now have a way lower expense ratio!!! Way to take action!!! CONGRATULATIONS!!!
I appreciate how informative and transparent you guys are. There is zero time wasted in getting into the nuts and bolts of personal finance. This is my favorite channel to watch as I start my FI journey. I just paid off all of my student loan debt, 260k! Thank you so much.
wow. congratulation
How you managed to rack up so much student loan? 260K is a huge number
That's how much my student loans are! CONGRATS!!!!
@@cfont4939 did u study to be Wizard? 260k study loan is just outrageous. No degree worth 260k in today's job market
Patricia Adu s
About TDFs being too conservative, you can choose the year based on your risk tolerance too, so if the risk is too low for you for your retirement year, just pick one 5-15 years later
With TDFs your portfolio automatically becomes more bond based, but I’m assuming that if you’re trying to retire early then having an aggressive portfolio is necessary, even when you’re close to retiring.
That’s what I did
I had this idea also
This is the best finance channel on TH-cam hands down!! Y’all explain EVERYTHING, I’ve learned so much
I agree...great duo, as always...awesome content👌
Agree
yall are savin my life rn
I’m so thankful you made this video!! I thought it was the best for me to keep my money in the target date fund, but I am going to look into the one I am invested in at my job to see what underlying funds i have. I think I am going to allocate new funds into index funds that I choose. Feeling empowered.
I'm considering the same thing. I'm 10 years from retirement age but I think I could be doing much better taking on more risk and investing more heavily in the 500 index fund.
I first started with retirement date funds then when I looked deeper into them I realized how easy it was to manage it myself. Great video!
It's like you can do the same thing yourself - for cheaper! :)
8’m trying to learn here. Where would one go to learn how to manage themselves? Have any hints? Tips? Thanks!
Dividend Growth Investing I’m trying to learn. Where would one go to learn how to manage themselves? Have any hints? Tricks? Thanks!
Chris T first start with understanding what are the different asset classes, e.g. bonds, stocks. You can invest into similar investments as a retirement date fund by investing directly into the index funds the target date fund holds. If you look under the portfolio or holdings of the target date fund, this is a great place to start.
Being retired in Portugal, do you maintain a US residential address to be able to trade ETFs? If yes, do you pay US state taxes? From what I've read US brokerages do not allow people with foreign addresses to trade US based ETFs. Please share, would be very beneficial to know any details around this.
I'm wondering the same thing...
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I really had to pause this video and went straight to my 401k, damn! If only I know about it earlier, my heart hurts thinking I spent too much on expense ratio on Target funds. Thank you again for another great and informative video Amon and Christina!
Thank you 🙏 I’m 29 and lean fire hopefully I will fully retire in the next 2-3 years. I’m currently 10% bonds and 90% US market. This video is a great example of one size does not fit all... my expenses are 1500 a month including travel budget (I rent my upstairs and live in the ground floor suite so my housing costs are zero). If the economy were to crash that 10% in bonds would pay for approximately 5-6 years living expenses without touching the stocks. With target date funds they can have upwards of 50% or more in bonds which is way to much for someone who has low living expenses.
Great point! Thanks for sharing your perspective! And CONGRATULATIONS on your upcoming retirement!!! :)
Congratulations
@André Ramon things are well. Thank you sir.
OP, did you end up retiring?
I'm trying to open a 457b and I can do pre-tax or Roth. I usually don't own when I do my taxes, so I'm thinking Roth. For Roth I can manage it myself or target date fund, based on this video its better to do it yourself, so what index funds should I choose?
This is the best video on target date funds-simple and easy to understand.
Thank you!
Glad you think so! Thanks so much!!!
As someone who just started researching target date funds, what about keeping them more aggressive by selecting a target 10 years after when you plan to retire? For example l, if I plan on retiring around the year 2040, invest in 2050 target funds?
I'm considering putting my HSA money in a target date fund, which because its healthcare money, I don't mind being a little more conservative with it.
Hello! My Roth IRA vanguard target date fund has a .08 expense ratio, and a 8.04% average return since inception in 2006. It’s comprised of 89% index funds. Would you still recommend switching to individually managed given this information? Thanks!
I have vanguard target retirement 2065...it’s been good to me. Was putting in 1500 a month but decided to downgrade that to 750 and put the other 750 to vigax...to be more bullish and save some expenses
$1500 a month!? I’m 21 and just became a registered nurse and I’m putting in 50% of my 9%. The other 50% is in a small cap fund
Hey Ahman and Christina, sorry if I butchered the spelling of your names lol. Got a question for you I will be opening up a Roth IRA account soon and I want to know if it’s better to go with the mutual funds or ETFs ? so for example one of the ETFs that I would get would be VIT or is it better to go with VTSAX? I watch a lot of your videos and I see that you guys actually have both but they’re so similar in nature I’m just wondering what is the best way to go if you’re just starting out I don’t think I need to purchase both of them do I? Thanks guys 🙏🏼
Thank you, question: would you know if tsp lifecycle funds buy “low” sell “high”, since they rebalance daily, I don’t know if that’s good or bad.
So question, if you have 2.5 years of cash, why not just have most of that in bonds, and at least get the 2 or 3 percent they offer. It is still much less risk adverse than stocks, but will at least match inflation
What are you planning to do with that money? If it's not very much, and simply serves as your emergency fund, then sure. But if it were me, and I already have an emergency fund, then I'd definitely go all in on some index funds. I want my money making me as much money as possible, and 2-3% isn't going to cut it.
@@mrkwns24 In the video they mentioned that they don't have any bonds, yet they have 2.5 years worth of savings in an emergency fund basically in the event of a stock market crash. I'm just not sure why most of that isn't at least in bonds rather than cash
@@maitden Some bonds can still carry a slight risk, though not much compared to stocks. Perhaps they do it in order to have the money as readily available to access in case of emergency. I've no experience with trying to cash out bonds, so I don't know if it may take longer. My emergency fund is with Wealthfront, and even then I know it's going to take me a day or 2 to get the cash. However, I see your point, and that is a great question. I hope they can shed some light on the matter.
Just checked the expense ratio and it is 0.7% on my husband's 2045 plan. Thanks for this video. I think we can learn more and handle this ourselves. Thanks!
So exciting to learn more and take control! :)
Hello guys, what does financial growth looks like after fire? Thank you for all you do.
The information you share and your success is great. The thing I admire even more is your unity. When you speak you say we and our. This is what it means to become one, it means you agree.
Great Info! Finally pulled the plug and switched over my Vanguard Target Date 2055 Funds over after watching your video! :)
Awesome information...I actually had a target fund and earlier this year looked to expense load and I was shocked! As per usual, you guys are spot on!!!
I have a question. My vanguard target date fund has expense ratio of .09 if I wanted to create an 3 fund portfolio that included vsmpx(vanguard total stock market .02 expense ratio), vtiax(vanguard total international expense ratio .08) vbtlx(vanguard total bond expense ratio of .03) that would create a higher total expense ratio that a tdf. So my question is the slightly higher expense ratio a big deal?
I would recommend you looking at the difference using a compound interest calculator. Look at what you would pay in expense ratios based on your investment and determine if you're okay with paying that! :)
My Roth IRA is in the Fidelity freedom 2040 index fund, all index funds. 90% stock and 10% Bonds.
Index is better than mutual funds in our opinion! :)
I first started my tax account through you guys. I have invested in 2 index funds so far…but I also bought stocks in Amazon and Apple Year before last and my money has dropped significantly. What do I do? Do I sell it now or should I keep it? Even the index funds have lost money as well…but not as bad as Amazon. so I didn’t make any profit be it index or other funds. Am I doing something different?
Wow! I allocated 10% to a target date fund...definitely changing my portfolio. Thank you so much🙏! I always learn something new every time I watch your videos. Actively managed funds are a rip off! I've seen some funds that have a 2% expense ratio! I'll stick with Vanguard ETF's and index funds. 👏
Actively managed funds have some seriously hefty fees! :(
My target date was 35%!!! I switched it to 5% 😂😂🤣
A+ video. Way to capture the pros and cons of target date funds. Being that most people are set it and forget it investors, target dates are popular and at least give them future stability if even at a cost of 4 to 6 percent returns
Thank you so much!!! :)
How did you guys put away savings and retirement at the same time? Did you first invest in brokerage and then spread the money in different accounts?
Can you do a video on your plans for your children's college education? I remember you mentioned in a previous video you have a special plan to reduce the cost or ensure they attend for free. I'm not a parent for I'm sure many viewers could really benefit from this info.
Thanks for watching! We did a video on getting college paid for - you can check it out on our videos tab! :)
Is it wise to buy an S&P index fund AND a more balanced portfolio like the Vanguard Life Strategy? Please help I’m new to investing.
This video was just what I needed. I watched as I signed up for my company retirement account. I was able to choose the the funds I wanted and do the research because of your help. Thank you soo much. I pray this year comes with blessings you both never even dreamed of. You deserve it for how you have been a blessing to hundred of thousands of people. Happy New Year. Can't wait to see what my portfolio will look like next year and for the years to come. 🤗
Glad it was helpful! Thanks for sharing Latoya!!!
I have a 2050 TDF with my employer the expense ratio is 0.29% FOR THE FUND is that good or expensive ?
Where would you suggest holding emergency funds? Holding a years worth of expenses in cash in a safe at home makes me nervous just thinking about it lol
Hey you two, not sure if you have ever covered a question like this but here goes anyway.
You current maintain your portfolio in a different country but I assume most of your currency is in American.
How do you handle or minimize the losses you get from currency exchange fees?
This situation is one I struggle with being new to the stock market and living in Canada.
Thanks!
Yes! Please talk about this. I am new to all of this and live in Canada as well. I have no clue about how you invest outside of your own country. Any information would be appreciated. Just love you two💗
I was looking into target date retirement fund for my child to be able to get out at age 21. Thoughts? Best investments for children?
Hey brother, I have the fidelity 2045 Target date index fund FIOFX is that a good one ?
What about if the company you work for is matching your contribution up to 6 percent ? Should you do the 6 with them or just handle it yourself with no match ?
Guys! Thanks a ton for highlighting this for me! I had a .15 expense ratio of my 2050 target fund. I logged in and moved my investments to a .03 expense ratio for total stock market. International was a little higher but still lower than .15! This video probably saved me thousands of dollars in the long run.
So I have fidelity index funds invested...just started. Do you think I should sell Fdewx? I’m currently invested in Fskax, Ftihx, fuamx, fsrnx, fdewx. I’m new to investing(27 yrs old).
What if you already bought tdfs as part of your retirement. Are we stuck with those shares??
Before following you we were paying about $200 a year in fees on $5k in our Target date fund in our 401k. Now are only paying $5 and contributing +$10k a year!!!
Yes, YES, and YYYESSSSSSS!!!! CONGRATULATIONS - that is amazing!!!
Thanks for sharing. I would like to share another negative about the Target retirement fund. I started investing in my 2035 fund many years ago. I accumulated well over a million dollars. As you discussed there is rebalancing that these funds do. When I started this fund I was young and foolish. I don’t have this fund in a tax shelter. Last year I was hit with close to a 300,000 long term capital gains tax. I’m in the 20 percent bracelet. Learn from my mistake you don’t want this in a regular account. Ouch
I invested my Roth IRA in Vanguard target date fund 2045. I don’t like the high percentage of the international in a TDF. I’m thinking to change my portfolio to a 2 or 3 funds like VTSAX & VTBLX or VTWAX & VTBLX or VTSAX & VTIAX & VTBLX. I’m 40 years old. Can I have your opinion?
I am beginner trying to learn about finances. Is 2 1/2 years of emergency fund really considered significant?
First, thanks so much for sharing your inspiring journey! Second, do you keep 2 years living expenses in cash in addition to 10% of your portfolio? Thanks again!
is there an age when it's too late? i'm 48, there was no FIRE when I was younger and I feel hopeless
Still have plenty of time! :)
Me too 53 but I’m going to make it work some how and also not let it happen to my daughter what happened to me. my wife is only 40 so got to get her set up put her 100% in vtsax and will keep leasing to these people. There a big help.
Good video, and they are all legitimate criticisms. The only thing I would say is that some of my friends and coworkers are so clueless about investing that it's good that they are just investing in ANYTHING. The 401k at my employer defaults people into a target date fund with .30 expense ratio and it has some weird funds in it (commodities and REIT's in addition to the traditional stocks and bonds), but a lot of these people have absolutely no clue how to pick funds and manage a portfolio, and have no interest learning about it at all. I tell them it's fine for them, and just keep plugging money into it, but I personally go in and build my own 3-fund portfolio with index funds. The target date fund is still much better than hiring a commissioned financial adviser.
My hunch is that most of the people watching your videos are savvy enough that they should be building their own portfolio's with index funds and staying away from target date funds. As you said, it's not that hard.
Any help from you guys is appreciated. My work has mine automatically in a TDF. They also offer the s and p 500. Should I move all my money there? Then in the years closer to retirement move it back to the TDF? Thanks!!
How many brokerage account do you recommend
Thanks! That workgroup looks useful. I had a job with only a few funds available - all target date finds. They did ok, but I was excited when I could move my money out of it into my self-directed IRA. Low-cost, broad-market ETFs are an awesome way to go (over the long run), though I personally invest in individual dividend stocks :). I’m not a fan of going the standard 4% route :). I’m in my 40s and am 100% equities, but I wouldn’t do that unless you are aware of the risks.
Thanks for watching! :) Being aware of the risks is definitely key! Knowing the risks allows someone to make a more informed decision - great point! :)
Amon & Christina thanks for that important info. My wife and I started on your workbook today and I can honestly say we got a reality check. We take so many things for granted. I will let you know how things turn out as we continue working through the workbook.
HI there guys! So excited that you started working on the workbook - AND that you're doing it together!!! :) Keep us posted! :)
Thank you for this video! My employer just switched 401k programs and started offering this type of investment as well as other options. So this is great timing!
Perfect timing! - Hopefully, you now know what to look out for! :)
I took notes. Well explained with details and explains. Too the point with no fluff. Thanks Amon and Christina for helping others. Retirement shouldn't have to be this complicated for anyone but at least you are simplifying it for the masses.
I really like how informative you guys are. Could you tell me what the difference is between buying mutual/index from Vanguard using Vanguards platform versus buying the same from another broker like etrade or merril edge?
About 90% of my 401(k) investment is in the target date fund. Should I wait for the market downturn in order to change my investment into Index fund?
I love your videos!! Question: I just realized my company only allows me to invest in these target funds that have the higher expense ratio. It looks like my only option for index fund in the FID 500 INDEX? Should I switch over in your opinion??
I used to wonder how people afforded expensive cars and nice homes. I finally understood, for those not drowning in debt, a man and woman working TOGETHER can accomplish a lot. I love to see this.
I have a MAC computer, so does the excel work sheet work for MAC, or Windows only?
Great question! We don't have MACs, but my understanding is that you can save the Excel spreadsheet and open it in Numbers (Apple's spreadsheet app). There's also the other option: Google Sheets - which also work for MACs! :)
Your videos are very helpful! Thank you for making them. Do you have suggestions for bond index fund investment? What allocation is recommended by age? I have heard 90% stocks/10% bonds. Thank you!
We're actually discussing a bond video! Stay tuned!!! :)
I'm wondering if it is a good idea at my age planning to retire at 67, 12 years from now to change my TDF to total market index fund at 85% and the 15% on a total bonds index fund? Or should leave it as is? Thanks for any feedback. Current my 401k is with TRowePrice.
My 401k is invested in a target date fund. The fund invests in index funds. I like your aggressive approach to investing, but I think bonds should be a part of an overall portfolio. Bonds dont move in lock-step with stocks. I actually use an index total bond fund for my savings account, since the savings accounts at banks and money markets are paying such paltry interest rates these days.
Thanks for sharing your opinion Joey!
Thank you! Thank you! I love your clarity and transparency . I’m going to check my target fund and do a deeper dive on what best meets my future needs
Great video! It addressed all of my concerns with target date funds.I currently use the target date retirement fund. The company I work for currently doesn’t offer VTSAX, or much of a variety of other index funds on their own. It’s just offered in the target date retirement fund.
Wow - glad that it addressed all your concerns! Thanks for watching!
Same here. My 401k options are wrapped in target date funds. Ratios aren’t terrible but not as good as some index/etf/mutual funds.
I started off with a Target date fund through a Vanguard 401k because I had no clue what was a good investment. At the time, it had a net expense ratio of 0.25%. When I found out I could get less than 0.05% net expense ratio, I immediately switched. I have never looked back since then.
Such a difference the higher expense ratio means towards your wealth development! So cool that you looked into it and took action! :)
i just looked into mine i saw that it has 0.41% omg! :0 , how do I switch plz advice ?
@@vickyrodriguez6668 Look to see if there are lower cost choices. Check for a large group fund with 0.20% or lower expense ratio.
Also look into opening an Individual Retirement Account (IRA) to have more choices with Fidelity or Charles Schwab. FZROX, FNILX, SWPPX, or SWTSX are great choices to invest in.
I am employed and have about 5 yrs to retire but I am limited to target funds and a couple of other mutual funds. I am not sure how I can invest my money in an index fund.
I am trying to understand all of this but I do not get it. So if I open target retirement on vanguard and pay in regular amount of money every month then can I on top of that pay in other money and invest them on different way for example buying stocks by myself?
Thanks for this video! I realized last week I have a large amount of cash/bonds in my target date fund. Im only 33! Im calling Monday to fix. I wish I would have realized this earlier🤦♀️
ON the bright side, you're only 33 and you're learning about how your accounts work and how they're set up, which is great!!! :)
I have 8 percent of bonds in my work 401k retire 2050 fidelity, target date fund. %55 domestic stocks, %39 foreign stock. Not sure if good. Im 36. After watching this should i tell my job to move to index?
I absolutely love you guys. I just sold my target date funds and opted forthe Fidelity 500 (FXAIX). My target date fund was 15% bonds. Piss all over that crap. Bonds have been total garbage the last few years any ways. I may revisit the idea of bonds in 10 years.
I wavered and waffled and was just about paralyzed with over-analysis on how to jump into a Roth IRA with Vanguard. I did NOT want to wait until I had $3,000 for some of the funds, so I went with a target date fund for $1,000. It's comprised (thankfully) of 4 index funds, and it has grown to approx. $45,000 in 5 years! I am pretty proud of myself for that. However, I would like to put MORE money into VTSAX, so I opened that account (also under my Roth IRA umbrella) with $3,000 (from my savings). I should mention that I started later in life (late 40s), so having 100% stocks scared me.
Investing can be so confusing. Thank you for taking your time on sharing information about this particular investment👍🏼
Well - thank you for taking the time to watch our videos AND for leaving a comment!!! :)
Fidelity have the target date index fund too. The exp ratio is only 0.12%.
This video, along with your others, is brilliant! You both speak in layman's terms so it's easy to understand. I recently joined a target date fund and didn't know of the cons. I have learned more from your videos than countless others. Thanks for that. Also, looking forward to incorporating your workbook next.
Thank you guys for this video, I have a target fund, but then purchased my own mutual fund accounts and in just one year I see the performance difference, I will be selling my target fund and buying more index funds by the weekend
I really appreciate the content, tone, clarity, and conciseness of the video. I am subscribing. Thanks.
Is the 401k still worth it if target date funds are the only option?
Hey guys! What is your feeling on the russell 1000 index for a 401k? That is about the only other option I have in my 401k aside from target date and high fee actively managed funds. Thanks for your opinion!
Do you have video on how to make a will? What are your thoughts about will. Thank you for your great videos.
Many people get a combination of a will and a living trust. A will by itself is not protection against your estate having to go into probate. A living trust and a will avoids the time and expense of probate, and assures your wishes will be carried out through an attorney. Start your research by searching living trusts on TH-cam. Also, people usually get a power of attorney, and a medical directive written up with a will and living trust at the same time. Average price for this package through a good attorney should be in the $1500 to $3000 range,
Can you make a review a vanguard target fund by date wich one will be a best option perfomer + how to diversify your self so you don't pay 0.45 % ratio , Thanks
I really appreciate all this info, you guys are so simple to understand! I just subscribed.
Target date funds, such a dinosaur concept. I remember selecting the "2040" back in the 90's. For people that want to FIRE, you need to select the 2200. Of course I'm kidding here, or am I? It seems strange but that is exactly what you would want. Great video guys.
Such a funny point, but illustrated exactly what we said! LOL! Perhaps the 2200 TDF will work! LOL! :) Thanks for watching!
@@OurRichJourney You guys covered the exact points. I'm not even sure a 2200 even exists, but you got my point. lol. Fantastic video. Happy Holidays.
Thank you sir 3 years later still good advice
Any reason you didn’t mention the TSP L fund ? Do you not like it and if not why?
We didn't mention it just because the TSP is less applicable to everyone. But, it's a target date fund, so what we say in the videos applies to our thoughts on the L fund. :)
What about government workers with a 457b? I reallocated my funds to 100% S&P 500 to mimic VTSAX since my employer uses Nationwide. But I really checked and it looks like it was reallocated, without my knowledge, 75% into a target date fund and 25% fidelity 500 index fund. Ummm??? Who did that, not me. Seems like somebody saw what I did and thought I was crazy. So now im trying ro figure how i need to reallocate... again!!!
Your channel is awesome!
I am 58 years old..is it a good time to be 100% vtsax? About 350k in a IRA..now at Edward Jones.. thinking about moving it to Vanguard
What if this fund is provided by my employer? And there is a company match.
As the plan administrator for my company plan I can say that my company does default into target date funds. Before we moved to Fidelity the default was a money market (terrible place to put all your money if you ever want to retire). I try to advise whenever I onboard new employees to speak with our advisors, whose services are already paid for by the plan, to choose index funds that are lower cost to them but still ideal for when they want to retire. Few of them take my advice and just stay in target date funds. So frustrating.
The frustration is REAL!!! LOL! - At least you try! :)
@@Warrior_Resisting_Colonialism I get that, but my employees have free (already paid for) financial advisors who will tell them exactly what to do based on their goals. I even have our advisors come out to our building a couple times a year so the employees don't have to go out of their way. It just feels irresponsible to me.
@@Warrior_Resisting_Colonialism no, I bring in a catered lunch and anyone can come to the class style session and then I set it up so that employees can schedule one-on-one's throughout the day. Regular business hours.
I recently opened a Roth IRA account and I was going to put a target date fund in it to go along with depositing money here and there. After watching your video I'm not so sure if that is a good idea. I currently have two investment portfolios that I use to focus on individual stocks, and I just added 2 ETFs to one of them. Do you think I should purchase a TD fund (0.15% Net expense Ratio) for my Roth IRA, or should I focus on purchasing stocks and ETF for the other portfolios while also adding $ to the IRA? Also just to give some additional background information, I'm currently in my mid 20s .
if you are in your 20's, you should be 100% VTI
Another great video! I am learning a lot from you. Question: why do invest MF like VFIAX instead of just buying equivalent ETFs with a smaller expense ratio and no entry threshold? Thank you!
In previous videos they explained the fractional shares capabilities. ETFs don't allow that on most platforms . M1 Finance, Stash, Charles Schwab are the exceptions for ETF fractional share purchasing.
@ Denis Bykovsky - Ditto on what @ Agent_WestCoast A said! :) BUT, we've gotten that question a lot, so we're thinking about doing a video specifically on total stock market index funds v. ETFs. Thanks for watching!
@ Agent_WestCoast A - Ditto to what you said! :)
Thank you again for you responses. I also spoke with financial adviser at Schwab today. He says that another difference between ETF vs MF is that ETF is a fixed blend of stocks and if one company performing poorly dragging ETF down, its impossible to get rid of that particular bad stock, but for MF it’s possible. Another difference is that MF buys/sells stocks internally, therefore you, as a holder of MF, are subject for all of those taxes related with trades that happens behind the scenes. I though it could be helpful
The licorice analogy was perfect! Thanks.
Haha! I feel like everyone should be able to related to that licorice jelly bean! LOL!
I appreciate this video (and all of your videos) my employer is switching to Vanguard (which is great) but they are going to be target date funds initially. They said we can change that if we want to and now I’ll be armed with information as to why I’ll want to change that. ❤️
LOVE that you're armed with information! Thanks for watching Lauren!
I just signed up to invest with a target date fund thru my works RRSP company, but I didn’t do any research before I picked my fund. 😥
Thanks for sharing your wealth of knowledge. Didn't know I had choices. Just moved my 401k out of a target date fund.
Great Video 😊
Can you draw out this money if no longer with employer
Excellent video. Very simple not only to understand but also to remember what they suggest because the suggestions make sense. Thank you young couple.
I just checked my Vanguard 2035 Target fund and its 100% Index funds. Expense ratio .14%
Good to check and know! :)
Our Rich Journey Thanks for the video 😀
Jazzmine Jackson good guy Vanguard 👍🏾
My IRA - same thing - .14 at Vanguard but my 401K with my employer is a different story. Limited options. My vanguard is the 2040 - still may change it bc it’s 15% in bonds, which makes no sense - I’d rather be 100% stocks/index funds at this point.
Hey guys, I'm about 10 years from retirement age and, just like you said, my company's 401k put me in a Vanguard target date fund. I started looking around and doing a bit more research and, even though I'm pretty close to retirement, I think I could be doing better by re-allocating all or most of my contributions (currently $50 a week with some company matching) into the Vanguard 500 index fund admiral shares. However I've seen this fund called something else and with a different ticker symbol (VOO). What's the difference?
My wife added a 10%small cap value to her target date fund to implement Paul Merriman’s two funds for life. Any thoughts?