Rich_by_the_Bay
Moderator Emeritus
The so-called life strategy funds seem logical to me but I can't help but wonder if they don't ding you twice for expenses.
For example, the Vanguard 2025 fund has an expense ratio of .2%. It consists solely of other Vanguard funds which each have their own expense ratios, such as .27% for the Vanguard European Fund. So you seem to be paying .2% + .27%, or .47% expense ratio - rather high for a Vanguard index type fund.
For just a little effort on your own to buy and adjust comparable index funds annually, you cut your expenses in half. Plus you can fine tune your distributions as you see fit, fund by fund.
So what am I missing? Is the "set it and forget it" aspect worth doubling your expenses?
For example, the Vanguard 2025 fund has an expense ratio of .2%. It consists solely of other Vanguard funds which each have their own expense ratios, such as .27% for the Vanguard European Fund. So you seem to be paying .2% + .27%, or .47% expense ratio - rather high for a Vanguard index type fund.
For just a little effort on your own to buy and adjust comparable index funds annually, you cut your expenses in half. Plus you can fine tune your distributions as you see fit, fund by fund.
So what am I missing? Is the "set it and forget it" aspect worth doubling your expenses?