Just opened a Roth IRA :) Opinion on two target date funds in an IRA?

[Effect]

Last week I opened up my Roth IRA (just turned 25). While I do know a decent amount when it comes to investing I really don't want to take the time to try and figure how to put together a portfolio just yet so I decide to for a target date fund. Opened my IRA at T.Rowe Price and went for the Retirement 2050 Fund. Between this, my 403(b) (this could change when I leave my current job for a better one in future), and having a money market savings I think I'm off to a decent start. However I've been wondering about this.

I have been wondering about something though. What are opinions about having two target funds in an IRA?

Like I said I currently have shares in T.Rowe Price's Retirement 2050 Fund. What about adding a lower target date fund such as perhaps 2010, 2020, or 2030? The asset allocation changes over time in target funds with the lower ones having more bond assets. Would it be a good idea to do that so that the IRA is a bit more stable in terms of it's value (going down less over time but actually increasing more)?

Or would the result not be that and it would be better to focus on one fund at the moment?


Thank you.

 

[REWahoo]

At your age, I'd suggest you stick with the 2050 fund and not worry about it for the next 5 or 10 years.

 

[Goonie]

What are opinions about having two target funds in an IRA?

Like I said I currently have shares in T.Rowe Price's Retirement 2050 Fund. What about adding a lower target date fund such as perhaps 2010, 2020, or 2030? The asset allocation changes over time in target funds with the lower ones having more bond assets. Would it be a good idea to do that so that the IRA is a bit more stable in terms of it's value (going down less over time but actually increasing more)?

At your age, I'd suggest you stick with the 2050 fund and not worry about it for the next 5 or 10 years.

I agree with REWahoo....at your age I'd just stick with the one for now.

I have two different TRP Retirement Funds.....a 2020 and a 2030. One is my Roth IRA, and the other is a Rollover IRA. I chose the two for the reasons that you are pondering.....a little less volatility. The 2020 is 74.1% stock, and the 2030 is 85.6% stock. I'm comfortable with those percentages......I'm 51, so it's got at least another 8.5 years to (hopefully) grow for me....probably longer though.

 

[Effect]

Thanks for the feedback. Focusing on one for the time being does seem like the better bet.