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Old 10-29-2017, 12:33 AM   #1
ushaggerb
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Default Target Funds

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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Old 10-29-2017, 09:49 AM   #2
Doobs41378
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Quote:
Originally Posted by ushaggerb View Post
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!


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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