401k – Do I keep it in target retirement or go split it up into 25% in VTSAX, VFIAX, VTIAX, VTWAX?

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  • #82198 Reply
    Noah

      I currently have my 401k investing into a vanguard 2060 target retirement. Turning 23 next month and brand new to investing.

      Do I keep it in target retirement or go split it up into 25% in VTSAX, VFIAX, VTIAX, VTWAX?

      From my research the target retirement isn’t aggressive and has 10% bonds which is frowned upon for investing at a young age.

      I’m looking to set it and forget.

      #82199 Reply
      Matthew

        IMO don’t bother with TDFs, they start way to conservative, and get even more conservative way too soon. Starting out, you literally only need one fund.

        I’m currently 100% VTI, though will add small cap in the near future.

        #82200 Reply
        Sean

          I generally think target retirements are too conservative, but that is definitely not the split I would do. That’s an INSANE amount of overlap.

          #82201 Reply
          Nate

            Honestly for simplicity that’s a great choice. There is a school of thought that when you are in the wealth accumulation phase you don’t need a mix of bonds. I put 100% into VTSAX mostly cause that what JL Collins says to do. Then you can set it and forget it and the expense ratio is a little lower.

            #82202 Reply
            Tony

              100% VTSAX for next 35 years, is what I would do. I’m 54 and about to retire. I have zero bonds. However, I do have a few rental properties and a pension coming. But you’re so young. Go aggressive.

              #82203 Reply
              Todd

                With me even getting closer to retirement at 42 is mostly VTSAX still. Being in young 20’s the huge importance is putting as much away as possible.

                #82204 Reply
                Mike

                  Of the professional financial advisors I know – including CFPs – easily more than half of them invest in TDFs for their retirement savings. I personally think they’re possibly the best retail investment product ever conceived.

                  For the low cost of (potentially) less than 0.1%, you get a professional asset allocation (based on age), automatic re-allocation, automatic rebalancing, exceptional diversification, and professional management. Your job is to simply plough in the dough. It’s the ultimate set it and forget it investment.

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