Quote:
Originally Posted by ushaggerb
Most of the major Fund owners now offer Target Retirement funds. Rebalances every year . All include index funds: U.S index, Global index, Bond indices, even cash for older folks. Could go to a financial planner but if they didn’t recommend a Target Retirement fund, I’d probably drop them. And why pay to get a reco for something I’m already doing? Rules of Thumb: know your investment horizon, everybody regresses to the mean, focus on the efficient frontier, the avoidance of management fees generally places you in the 68th-72nd percentile because you are buying the mean for less, buying individual stocks is gambling (refer to efficient frontier).
Best of luck!
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Target date funds are great but they do have higher expense ratios usually than an index fund. Vanguard 500 .4 basis points or 4 cents for every hundred dollars for admiral shares compared to .16 or 16 cents for every 100 dollars. So while not a ton of money per say it still costs 4 times as much to own that fund over the other.
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