Hello all. In your IRA(s) or 401K (or similar) do you invest in target retirement funds? Part of my IRA portfolio is in said, but the rest is in a diversified portfolio. Most of my wife's IRAs, however, are in such a fund. Anyway, I am curious if others utilize this investment vehicle or not. If so, how is it working for your retirement planning? If not, why not? Thanks much.
I've never used them myself. I do like the general idea they follow. I've heard they can be pretty expensive.
The only retirement fund I have is the benefit given by our company to employees whose tenure is more than 20 years. I would be getting 2 months salary for every year of service I had rendered when I retire. And for other investments, it is our car and our home. Other than that, we spend our money for our enjoyment like eating in good restaurants, traveling to local places and also abroad, buying personal things that we desire. We don't worry much for our future because our policy is to savor life until we can.
I also have never invested in them either to be honest although they do seem to be quite popular, for the obvious reasons although like others have said a little on the expensive side.
It's not something I've used but it was something I was looking into yesterday by coincidence for a client. Vanguard seems to be one of the cheaper ways to play it, though I get the impression that it's a one-size-fits-all approach that doesn't necessarily work for everyone.
I have a similar approach. I am putting my wife's IRA in a target retirement fund, but mine is in a lot of different vehicles. The main reason I made this choice is that my wife has very little interest in watching the markets or reading about investing or anything of that nature, so neither of us really want to put much energy into managing her account, whereas I really enjoy learning and managing my account so it is something I enjoy spending time doing. It will be interesting to see which way leads to greater returns in the long run. In the short term, it appears that the effort to manage my own investments is paying off, but we will not really know which way is better for at least another 20 years.
I'm a big fan of the Target Retirement funds from Vanguard in particular, due to the low fees and scandal-free nature of the semi not-for-profit company. I'm a big Bogle (founder of Vanguard) fan due to his pro-consumer position and blowing the lid off of the unwarranted rip-off fees of managed funds. There are a few important things accomplished with those Target funds. First, it helps keep the emotion out of it. Most people make mistakes by trying to be cute and time the market instead of adhering to the sound principles of long-term investing. Second, it focuses on asset allocation based on time-frame (age), which is what most people should be sticking to in my opinion. Last but not least, built in diversification and automation. Regular buying into a diversified portfolio is a great habit for the long-term and that approach helps you cement that habit.
Thanks man, just trying to dish out some of the truth I've seen a lot of people never absorb and therefore suffer, unfortunately.
Are you in NY City if you don't mind me asking? I haven't been there in ages. I've heard that DiBlasio isn't so well liked.