What’s the best Target Date Fund?
Hey All, I wanted to put most of my net worth into a target date fund. What’s the best one? I’m debating between vanguard 2060 fund, fidelity 2060 fund and life path 2060. #personalfinance #investments
Have you consider the Schwab 2060 find too?
First, TC or GTFO. Second, what’s your age? This matters the most if I’d you have any specific near term plans you should mention this too. Third, how much are we talking here? What is your NW? If you’re youngish <40 I would personally recommend VT or a custom split of VTI/VXUS (around 30-43 in the latter) if you want more domestic exposure and no bonds.
I’m 30 and we are talking about 100K
Don't recommend target date funds over total market ones, especially if your target is 2060 lol. The logic is that eventually the drag from the non-equity portion of the target fund will cause it to diverge from a pure US equity fund in 40 years so much that even if there is a big equities crash in 2060, you'd still be ahead compared to the target date fund. VTSAX and chill. Maybe 10-20% in non-US if you're feeling bashful.
All of those are great choices. If you want to nitpick you can look at the underlying asset allocation and pick the one you like best. BTC for example tends to not have any bonds (well a tiny pct) in the glide path early. For Fidelity, pick Fidelity Freedom Index not Fidelity Freedom. They are confusingly named similarly but the second is actively managed and has a much higher expense ratio.
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AMC
This is the way
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In the grand scheme of 40 years, it won't matter and there is no way to tell. Pick the one with the lowest fees and fund costs.
This
This. Mostly. Vanguard is the most common, if you hold it outside of a retirement account (which you really shouldn't, tax effectiveness) and need to transfer to a new broker you can probably do it. Sometime they won't offer the fidelity funds