What do people usually choose? Edit: 5YOE, just been doing 401k past 4yrs and maxed out only in the past 2 years #personalfinance #investments #401k
Target dates buy bonds way to early and allocate to great a portion to them
Early in your career it doesn't matter so much as the portion of your savings that goes into bonds is smaller. These target date funds will automatically increase the bond portion as you get older.
How to convert ? By default 401 is always target funds correct ?
Picking a later target date than when you actually plan to retire is a nice way to prevent allocating to bonds too early but still getting the "advice" a target date provides
I have a mixture of three target date funds; one at the year I hope to retire (turning 66) and then two more at age 71 and 76. Partly for more aggression but also because I can't imagine my generation being able to retire "on time" 😢
TDFs are too expensive and get too conservative too quickly. Go with the index fund.
Target date funds switch into bonds over time and carry high fees compared to index funds. Index funds, RE and crypto if you want actual yield