My previous company 401k is the Vanguard Target Retirement Fund 2055. It doesn't grow much and still below the ATH by 20%, whereas SPY already ATH. Should I sell that and convert to SPY instead. I currently have 120k 401k Target 2055 and 110k 401k in SPY. Should i just convert all 401k to SPY instead? Thanks
Etrade/fidelity/whatever self managed IRA. Just don’t blow your spot. Do a bogglehead or dividend focused Strat.
It's because it's 35% an international stock index which has underperformed the US stock market index. A better question would be whether or not it's worthwhile to invest in an international stock market index.
Sp500
The advantage of the Vanguard Target retirement funds is that they are well diversified and less volatile compared to the overall market. If you are the kind of investor who hates volatility and cannot stomach a 20% drop in portfolio value during bear markets then the Vanguard target fund is a good option. If you have strong conviction that you don’t need international diversification and bonds in your portfolio and are ok with market volatility then you can go with SPY. Btw VOO is better than SPY as it has 1/3rd the expense ratio. The only advantage of SPY is if you trade options.
If longer time horizon (20+ years), go for SP500 fund or even QQQ (if your 401k allows brokeragelink). I was doing target date fund when I was ignorant about investing, but then changed to sp500. As target funds are extremely conservative and has high expense ratio (around 0.3-0.4%). Currently, also investing a fraction in qqqm.
Human Managed funds are garbage. Invest in index funds. Why pay extra management fees to someone who is just picking stocks they think will out perform the market. Index funds win because the market always goes up over the long run. if it doesn’t you are gonna have bigger problems than your retirement fund like, “which one of the family should we eat first?”
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It probably has bonds in it, and they committed ritual suicide. I am 100% stocks, but I have some things that make that more appropriate for me
It has some bonds but the growth rate is so disappointing
Yep, that's bonds, though they will shoot up if interest rates go down