Is there any downside to opening up a Fido Freedom Fund or a Vanguard Target Fund and not use the fund as a retirement fund? Does it make sense to use one of these funds as simply a mutual fund that one invests in?
redduck said:I guess I should added some more information regarding the question. The person who is thinking of using one of these funds is a 32 year-old and is currently fully funding his Roth IRA. He is thinking of investing his excess money in either a Freedom Fund or a Target Fund, but not using the fund as an "offical" retirement account.
I may be wrong, but I don't think those funds are designed to have all the fundsredduck said:Is there any downside to opening up a Fido Freedom Fund or a Vanguard Target Fund and not use the fund as a retirement fund? Does it make sense to use one of these funds as simply a mutual fund that one invests in?
terminator said:When I looked at those my biggest "problem" with them was the expense ratio (about .75%). Not outrageous by any stretch but the same thing can be accomplished for quite a bit less with index funds.
LOL! said:So while target retirement funds are an excellent way to get started and perhaps to use in retirement accounts, I do not think they are the best way to invest in taxable accounts.