The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with them, then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but higher fees.
Go for it. When it comes time to growth investing, I would not have any more than 10-20% Bonds in my portfolio. Following the guidance of a seasoned advisor did the trick for me, helped turn my one year salary to 5 figure monthly dividends.
Can't divulge much here, I take guidance from a Pennsylvania-based advisor 'Karen Lynne Chess' and most likely, the internet is where to find her basic info, simply do your research.
Thank you! I am 56 years old and have only been investing for about 5 years now. I am a middle school teacher, and I plan to retire in 5 years. This video was very helpful! I'm learning a lot from your channel!
I have two vanguard target retirement 2035 and 2040. The first one 2035 I got 3 years ago. I wanted to retire at 63. Now fast forward I might need to work few more years. So I got Vanguard target ret 2040.
The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with a Vanguard Target Date Funds then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but they have higher fees.
Mine currently is allocated at 10 percent bonds. Is that too much? I’ve heard that having some bond exposure especially during the past year isn’t a bad thing.
@@alex124241 10% is just fine. My guess is you're still relatively young? As you get closer to retirement just add more bonds. However, when it comes time to retire I would not have any more than 35-40% Bonds in my portfolio. Vanguard Target Date Funds will get you to that 35%-40% threshold long before you retire.This is not financial advice though only my opinion. If you want to keep it very safe then Vanguard TDF may be for you.
I'm 35 and have the 2055 TDF. It is 90 percent stocks and 10 percent bonds. I started buying more bond fund ETFs for my Roth IRA, due to the interest rates causing the prices to be on a fire sale. My Roth IRA is between 75 and 80 percent stocks. 20 percent bonds and a percent or two of gold, silver and money market funds. The yearly contribution limit is lower, so it is less aggressive than my 401k.
How are you investing in ETFs with a target date fund? I have my money in a Roth, and I am trying to invest it in Vangaurd's TDF, but its only option is mutual funds... is that a problem?
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@OnkelFrauenknecht Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
My company paid for a consultant to provide retirement classes when I was 24 and just started saving for retirement. The class for new investers was called "The Kids Table" and basically their advice was go with a target retirement fund that aligned with your 65th birthday. That was 20 years ago. It is the only thing I've ever invested in.
@Future_Dietian the target date fund my employer provides uses mutual funds I believe. Not exactly what I like but with the lack of options to choose from I wanted to keep it simple and a target date fund is about as simple as you can get if you're employer's brokerage has minimal options to choose from.
When I started working not that long ago, I opened my 401k straight into a target date fund, I had no freaking idea what I was doing and didn't care as long as I saved some money. Now I'm educating myself more and know what it's about haha.
I'm curious about the expense ratio - Do you know if you are paying the expense ratio for each of the individual funds held within the target date funds IN ADDITION to the 0.08% for the target date fund? For example, within the Vanguard 2045 target date fund (VTIVX) there are 4 funds, each with their own expense ratio associated with them. Essentially, are you paying 0.08% on top of those fund expense ratios, or are those expense ratios already factored in to the 0.08%? I hope I'm explaining my question clearly. Thanks!
My 2025 Vanguard Retirement Fund shows +2.28% since 12/08/2019 which is better than nothing and better than many of my associates have realized this year. However, it is a bit harrowing when one begins to think that the old process of blending stocks with bonds for safety may actually no longer be a viable strategy...well...but wait a minute...for a guy like me, who really doesn't desire to track his investments every day, let alone every week...it works....so far ;)
These have most of my retirement cash. Mostly because I am too mentally taxed to research where I think the market is headed and am honest with myself about it. Also any of my stock picks that made money were more due to luck than any research did.
My employers 401K is through Vanguard and believe is a target retirement fund plan. It's already set up without me doing anything else but contribute to it. I wouldn't know what to do. Trying to learn about investing makes me feel anxious so all I can do is hope, pray and trust Vanguard knows what it's doing. Right now it's at aggressive and I'm 49 so I don't know if it should be aggressive.
All you need is VTSAX during wealth accumulation. When you are close to retirement, exchange 5 to 10 years worth of expenses to VBTLX which will give you a more stable annual salary. Rinse and repeat. This will take care of sequence of return risk.
Mr Kim, I'm confused. Im investing in the S&P 500 on Robinhood. Is this the same as a retirement fund or do I need to add bonds? I'm 45 and would like to retire in 20 years. Im also investing in 3 individual stocks. Apple, Microsoft, and Amazon. Is this enough? Also, what percentage of my check do you think I should be putting in ea month?
I would stick with the S&P 500, I'm also investing in it but I'm 30. I got Realty Income, Coca-Cola, Microsoft, JP Morgan Chase and Hershey as my stock picks with VOO(S&P500) and DIA(Dow Jones). In my 401k I am also heavy in the S&P500
If you’re investing for retirement, you should be doing so through a Roth IRA and 401k. If the account you’re using in RobinHood is a standard taxable brokerage account, you’re going to lose A LOT of your gains to taxes.
Hi, I am a 45 years old woman and I need help with what target retirement funds I should go with? I plan to retire at age 60. Right now I have all my money in the savings account fund in Vanguard. Please give me some suggestions. Thank you.
Hi! Since that is less than 10 years out, Vanguard Target Retirement 2030 Fund (VTHRX) or Vanguard Target Retirement 2025 Fund (VTTVX) could be good options. Though you want to make sure you understand the asset allocation and feel comfortable with it.
I'm looking to invest $7,000 yearly in the Vanguard 2060 fund in my Roth IRA. It seems like a safe enough fund - it has grown nearly 10% in the last 10 years and it follows total world stocks & bonds what could go wrong lol
what is the maxium amount I can invest into a target date fund? let's say I'd like to deposit around $60k over the course of the next 2 years. is that possible?
Hi, my mom retired last year when she turn 65, when she contacted vanguard they told her to loan, I don't understand how vanguard works and what type of plan she has with vanguard. But I'm confused with why she has to loan when she's retired and I dont think she understands how vanguard works either. But when I ask her she say she knows what she's doing. Please need advise...
What if the target date fund I am having is the default enrollment when my employer provided their 401K ? Is it still a good investment or should I add the option of including S&P 500 into my portfolio as well ? Since it is not like a tradition Vanguard account, not sure will a 401K work differently
I initially invested in my work's Fidelity target date fund but between the higher fees and poor mix for my age, I changed it all to SP500 index fund and haven't regretted it. Your 401k plan should have an SP500 index fund option and at least for me switching took only a few minutes
Quick question, can you please let me know how can buy Vanguard Target Retirement Fund from Europe ? I am using Interactive broker but it seems permission denied due to I am not a us citizen ? Do you have any idea ?
I think it should be; the only issue is the fund gets more conservative as you near retirement, meaning it doesn't invest as aggressively, so you will not get as high of returns, but your assets will be more reliable. For example, the fund will likely invest in more bonds instead of stocks because, though they yield lower returns, they are more reliable. I am unsure if there is a way to maintain aggressive investing in a target date fund until retirement; I do not know much about this, though, so I would do some research and see if it's even worth setting an earlier date to retire.
Are you able to show how to invest in a Target Retirement Fund on the website? I have money in a Roth IRA but have not invested because I don't know how to use the website.
It depends on the company you are investing through. I would call during their office hours, and an employee or customer service representative should be able to walk you through the process. Tell them you want to invest in a target date fund and tell them the type of target date fund (i.e., vanguard, fidelity, BlackRock, ...) for the year you will turn 65, and they will instruct you how to do it. If you don't know which one to pick, they will help you pick it out; however, Vanguard, Fidelity, and Schwab are known for their low fees and reliability, so I recommend that. The target date duns should be labeled "Vanguard Target Date Fund 2065"(or year of expected retirement). I hope this helps!!
Great advice, appreciate it very much. I have a target date fund and a S&P 500 fund in my 401k, I believe that the target date fund is good for my diversification.
I have Vanguard target fund 2030 in my Roth but I want to be a more aggressive while I am working for the next 10 years. What growth fund should I consider including in this portfolio?
@@DrSchor Because although I would like to be a little more aggressive I have a medium-high tolerance for risk. I want the growth but I may need the money sooner than I am currently planning.
Hi Tae huge fan. If I change my mind after investing in a TDF for 10 years and change my mind and want to convert this fund into something VTSAX or an ETF, is this considered abnormal? Or am I stuck having to sell this fund and purchasing another fund manually, etc
Can I put this fund (let’s say TD 2055) under Roth IRA?? If yes, Roth IRA withdrawal age is 59 1/2 years while the TD is 2055 (I am 36 years age). So at what age I can start withdrawal without penalty??
I also have the Vanguard Target Retirement 2025 but can't seem to remember how the 2025 was selected...plan on working till 65 which will take me to 2030...should I change i?
“Past performance is no guarantee of future results.” Stock market has had a nice run recently, what if we hit a bear market near your retirement age? I imagine people will change their attitude towards risk.
One issue I have is that Vanguard heavily leans international in these funds for early years (35%+) and so they have underperformed by multiple percentage points over the last 10+ years.
I see the value for these for some people, but they're simply not for us and our situation. We're 0% bonds or international and never will be. It's been 10+ years since international has come close to any US fund. I don't understand why people still focus on these.
@@exgamer07 Look back 20 years. International has a higher standard deviation, higher max drawdown, and produced half the compounded annual growth as the US market. People also use diversification as a reason for international but it moves in lockstep with the US.
@@MrJeffgonz if you claim international stocks move lock step with the US then they can't have a higher max drawdown. It would have to be the same. Your claim is a contradiction. The reality is that there are periods when international stocks outperform, and there are period when they underpeform US stocks. Neither outperformance or underperformance last forever, thus it is a mistake to bet all of your money on one country, asset class, or company.
![ประสบการณ์ จ้าง Developer ที่ผมจะไม่มีวันลืม [ภาค2]](http://i.ytimg.com/vi/pZbsSDRrmXA/mqdefault.jpg)
The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with them, then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but higher fees.
Go for it. When it comes time to growth investing, I would not have any more than 10-20% Bonds in my portfolio. Following the guidance of a seasoned advisor did the trick for me, helped turn my one year salary to 5 figure monthly dividends.
@@everceen sounds good, looking for dividend returns but a super noobie, how can i reach out to the advisor that guides you please?
Can't divulge much here, I take guidance from a Pennsylvania-based advisor 'Karen Lynne Chess' and most likely, the internet is where to find her basic info, simply do your research.
thanks for putting this out, curiously googled Karen Lynne Chess and at once found her consulting page, she appears to be valid.
2-Funds for Life by Chris Pedersen. Pair the TDF with a SCV fund. Lowers your overall exposure to bonds.
Thanks! I can't believe how much I learned and you made it easy to understand.
You're very welcome!
Thank you! I am 56 years old and have only been investing for about 5 years now. I am a middle school teacher, and I plan to retire in 5 years. This video was very helpful! I'm learning a lot from your channel!
You started investing in retirement at 50 😂
I have two vanguard target retirement 2035 and 2040. The first one 2035 I got 3 years ago. I wanted to retire at 63. Now fast forward I might need to work few more years. So I got Vanguard target ret 2040.
The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with a Vanguard Target Date Funds then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but they have higher fees.
Mine currently is allocated at 10 percent bonds. Is that too much? I’ve heard that having some bond exposure especially during the past year isn’t a bad thing.
@@alex124241 10% is just fine. My guess is you're still relatively young? As you get closer to retirement just add more bonds. However, when it comes time to retire I would not have any more than 35-40% Bonds in my portfolio. Vanguard Target Date Funds will get you to that 35%-40% threshold long before you retire.This is not financial advice though only my opinion. If you want to keep it very safe then Vanguard TDF may be for you.
I'm 35 and have the 2055 TDF. It is 90 percent stocks and 10 percent bonds. I started buying more bond fund ETFs for my Roth IRA, due to the interest rates causing the prices to be on a fire sale. My Roth IRA is between 75 and 80 percent stocks. 20 percent bonds and a percent or two of gold, silver and money market funds. The yearly contribution limit is lower, so it is less aggressive than my 401k.
I was in one and I agree on the 10 year idea.
How are you investing in ETFs with a target date fund? I have my money in a Roth, and I am trying to invest it in Vangaurd's TDF, but its only option is mutual funds... is that a problem?
Up 11% from a year ago. Love this fund so far
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@OnkelFrauenknecht Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@BinuDauti Oh please I’d love that. Thanks!
*MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
My company paid for a consultant to provide retirement classes when I was 24 and just started saving for retirement. The class for new investers was called "The Kids Table" and basically their advice was go with a target retirement fund that aligned with your 65th birthday. That was 20 years ago. It is the only thing I've ever invested in.
target date funds have made me a multimillionaire. i also watched them drop 40% in a very short time and take a long time to recover.
I chose the Vanguard Target Retirement Trust 2060 II because of the lack of options in my employer's 401k.
Did you choose mutual funds or stocks? Does it really matter?
@Future_Dietian the target date fund my employer provides uses mutual funds I believe. Not exactly what I like but with the lack of options to choose from I wanted to keep it simple and a target date fund is about as simple as you can get if you're employer's brokerage has minimal options to choose from.
When I started working not that long ago, I opened my 401k straight into a target date fund, I had no freaking idea what I was doing and didn't care as long as I saved some money. Now I'm educating myself more and know what it's about haha.
I'm curious about the expense ratio - Do you know if you are paying the expense ratio for each of the individual funds held within the target date funds IN ADDITION to the 0.08% for the target date fund? For example, within the Vanguard 2045 target date fund (VTIVX) there are 4 funds, each with their own expense ratio associated with them. Essentially, are you paying 0.08% on top of those fund expense ratios, or are those expense ratios already factored in to the 0.08%? I hope I'm explaining my question clearly. Thanks!
My 2025 Vanguard Retirement Fund shows +2.28% since 12/08/2019 which is better than nothing and better than many of my associates have realized this year. However, it is a bit harrowing when one begins to think that the old process of blending stocks with bonds for safety may actually no longer be a viable strategy...well...but wait a minute...for a guy like me, who really doesn't desire to track his investments every day, let alone every week...it works....so far ;)
I have a 2025 managed fund too. I don't plan to withdraw from it until 2031. When I hopefully turn 73.
These have most of my retirement cash. Mostly because I am too mentally taxed to research where I think the market is headed and am honest with myself about it.
Also any of my stock picks that made money were more due to luck than any research did.
My employers 401K is through Vanguard and believe is a target retirement fund plan. It's already set up without me doing anything else but contribute to it. I wouldn't know what to do. Trying to learn about investing makes me feel anxious so all I can do is hope, pray and trust Vanguard knows what it's doing. Right now it's at aggressive and I'm 49 so I don't know if it should be aggressive.
All you need is VTSAX during wealth accumulation.
When you are close to retirement, exchange 5 to 10 years worth of expenses to VBTLX which will give you a more stable annual salary. Rinse and repeat. This will take care of sequence of return risk.
Good financial advice is so rare to come by. And this is such a wonderful example of that bravo
Mr Kim, I'm confused. Im investing in the S&P 500 on Robinhood. Is this the same as a retirement fund or do I need to add bonds? I'm 45 and would like to retire in 20 years. Im also investing in 3 individual stocks. Apple, Microsoft, and Amazon. Is this enough? Also, what percentage of my check do you think I should be putting in ea month?
I would stick with the S&P 500, I'm also investing in it but I'm 30. I got Realty Income, Coca-Cola, Microsoft, JP Morgan Chase and Hershey as my stock picks with VOO(S&P500) and DIA(Dow Jones). In my 401k I am also heavy in the S&P500
If you’re investing for retirement, you should be doing so through a Roth IRA and 401k. If the account you’re using in RobinHood is a standard taxable brokerage account, you’re going to lose A LOT of your gains to taxes.
Hi, I am a 45 years old woman and I need help with what target retirement funds I should go with? I plan to retire at age 60. Right now I have all my money in the savings account fund in Vanguard. Please give me some suggestions. Thank you.
The target dates he suggests in this video would work. Don't keep your money in cash. You must invest.
I love the way you describe things so clearly!
I’m 61, and planning on retiring at 67 or 70, which fund do you recommend Bro Kim?
Hi! Since that is less than 10 years out, Vanguard Target Retirement 2030 Fund (VTHRX) or Vanguard Target Retirement 2025 Fund (VTTVX) could be good options. Though you want to make sure you understand the asset allocation and feel comfortable with it.
Thanks for your question, my dad wants to the same thing. Thank you Tae for your response.
Very helpful! Thank you! I’m thinking of selecting a target date fund for 2045!
I'm looking to invest $7,000 yearly in the Vanguard 2060 fund in my Roth IRA. It seems like a safe enough fund - it has grown nearly 10% in the last 10 years and it follows total world stocks & bonds what could go wrong lol
Target Funds are often very conservative. Mine included annuities and high fees.
what is the maxium amount I can invest into a target date fund? let's say I'd like to deposit around $60k over the course of the next 2 years. is that possible?
Hi, my mom retired last year when she turn 65, when she contacted vanguard they told her to loan, I don't understand how vanguard works and what type of plan she has with vanguard. But I'm confused with why she has to loan when she's retired and I dont think she understands how vanguard works either. But when I ask her she say she knows what she's doing. Please need advise...
Hmmm did she find out and a loan I thought it’s all yours after retirement or any time you pull out the money
What if the target date fund I am having is the default enrollment when my employer provided their 401K ? Is it still a good investment or should I add the option of including S&P 500 into my portfolio as well ? Since it is not like a tradition Vanguard account, not sure will a 401K work differently
I initially invested in my work's Fidelity target date fund but between the higher fees and poor mix for my age, I changed it all to SP500 index fund and haven't regretted it. Your 401k plan should have an SP500 index fund option and at least for me switching took only a few minutes
Quick question, can you please let me know how can buy Vanguard Target Retirement Fund from Europe ? I am using Interactive broker but it seems permission denied due to I am not a us citizen ? Do you have any idea ?
can you have target date fund and vtsax fund at the same time?
What does "invest regularly" mean...Can you just do a one time investment or is it better to invest once a year or once every 5 years?
Invest with every paycheck you earn
Is it still fine to select the retirement funds that are outside our target retirement age?
As in planning to retire at 50, 55, 60, 70 years old?
I think it should be; the only issue is the fund gets more conservative as you near retirement, meaning it doesn't invest as aggressively, so you will not get as high of returns, but your assets will be more reliable. For example, the fund will likely invest in more bonds instead of stocks because, though they yield lower returns, they are more reliable. I am unsure if there is a way to maintain aggressive investing in a target date fund until retirement; I do not know much about this, though, so I would do some research and see if it's even worth setting an earlier date to retire.
Are you able to show how to invest in a Target Retirement Fund on the website? I have money in a Roth IRA but have not invested because I don't know how to use the website.
It depends on the company you are investing through. I would call during their office hours, and an employee or customer service representative should be able to walk you through the process. Tell them you want to invest in a target date fund and tell them the type of target date fund (i.e., vanguard, fidelity, BlackRock, ...) for the year you will turn 65, and they will instruct you how to do it. If you don't know which one to pick, they will help you pick it out; however, Vanguard, Fidelity, and Schwab are known for their low fees and reliability, so I recommend that. The target date duns should be labeled "Vanguard Target Date Fund 2065"(or year of expected retirement). I hope this helps!!
Great advice, appreciate it very much. I have a target date fund and a S&P 500 fund in my 401k, I believe that the target date fund is good for my diversification.
I have Vanguard target fund 2030 in my Roth but I want to be a more aggressive while I am working for the next 10 years. What growth fund should I consider including in this portfolio?
if you want to be aggressive why do have a target fund at all?
@@DrSchor Because although I would like to be a little more aggressive I have a medium-high tolerance for risk. I want the growth but I may need the money sooner than I am currently planning.
I would suggest going with Target Fund 2040 0r 2045 then.
Hi Tae huge fan. If I change my mind after investing in a TDF for 10 years and change my mind and want to convert this fund into something VTSAX or an ETF, is this considered abnormal? Or am I stuck having to sell this fund and purchasing another fund manually, etc
I am up 12% From 11 months ago from this
Can I put this fund (let’s say TD 2055) under Roth IRA?? If yes, Roth IRA withdrawal age is 59 1/2 years while the TD is 2055 (I am 36 years age). So at what age I can start withdrawal without penalty??
Don’t matter what fund you chose once you are 59 1/2 you can start withdrawing with no penalty
Those funds benefit Vanguard and Vanguards friends more than they do you, IMO.
Tae Kim, did you work with a paid advisor in your early investment journey?
I also have the Vanguard Target Retirement 2025 but can't seem to remember how the 2025 was selected...plan on working till 65 which will take me to 2030...should I change i?
duh
is it free to quit vanguard
Not all heroes wear cape.
Great info 👍
Glad it was helpful!
Just put everything into this target shit I’ll be back in 37 years to let you know how it went
“Past performance is no guarantee of future results.” Stock market has had a nice run recently, what if we hit a bear market near your retirement age? I imagine people will change their attitude towards risk.
One issue I have is that Vanguard heavily leans international in these funds for early years (35%+) and so they have underperformed by multiple percentage points over the last 10+ years.
I see the value for these for some people, but they're simply not for us and our situation. We're 0% bonds or international and never will be. It's been 10+ years since international has come close to any US fund. I don't understand why people still focus on these.
💯
10 years is not a long time. The US is growth stock heavy. Growth stocks are collapsing right now.
@@exgamer07 Look back 20 years. International has a higher standard deviation, higher max drawdown, and produced half the compounded annual growth as the US market. People also use diversification as a reason for international but it moves in lockstep with the US.
@@MrJeffgonz if you claim international stocks move lock step with the US then they can't have a higher max drawdown. It would have to be the same. Your claim is a contradiction.
The reality is that there are periods when international stocks outperform, and there are period when they underpeform US stocks. Neither outperformance or underperformance last forever, thus it is a mistake to bet all of your money on one country, asset class, or company.
@@exgamer07 they go up and down together but not by the exact amount. Use portfolio visualizer and see for yourself.
REIT
i love you
IMO the worst investment you can possibly make. Why waste thousands of dollars of missed gains for just a couple hours.
WHOA... you are younger than me, yet you seem and look WAAAY older. Dad vibes yikes
Target funds are just a marketing gimmick. Even the Thrift Savings Plan for federal employees has them.