Abandoning target date funds for pure sp500

Amazon
scudBooks

Go to company page Amazon

scudBooks
Nov 24, 2020 5 Comments

My target date fund through fidelity has almost 10x the expense ratio of good old FXAIX.

International exposure seems pointless these days with how connected the global economy already is to the US.

Am I dumb for going 100% FXAIX for my personal brokerage and 401k and IRA’s?

When I hit like 40 I’ll rebalance and add in a bond index for a simple two-fund portfolio, but until then, straight sp500.

Fwiw I’m 28 with 500k nw.

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TOP 5 Comments
  • Google
    puff puff

    Go to company page Google

    puff puff
    Why put any risk on retirement? Cash out RSus and play stonks with these. When you were about 8, then 16, stonks didn’t always go up and lots of people lost their retirements. You have never seen a real recession in your adult life.
    Nov 24, 2020 1
    • Even if it takes ten, twenty years to recover he'll still be ok considering he's 28. And you only lose your retirement if you sell. Don't take investing advice from someone who believes they can predict recessions and calls them "stonks," op.
      Nov 24, 2020
  • Curious which fidelity target date fund you are in. I think mine has a very low expense ratio.
    Nov 24, 2020 1
  • Citadel
    BrutеForce

    Go to company page Citadel

    BrutеForce
    That's totally fine as long as you're not yoloing on FD options. It's probably not going to make a huge difference, but you should always do whatever you're comfortable with.
    Nov 24, 2020 0