Starting small with 2035 portfolios

[One4g]

Hello all! Love this website, I would love to retire early...Ok here is my first question- What do you all think about the Vanguard Target Retirement 2035 and the Fidelity Freedom Fund 2035 portfolios? My wife and I both opened up a Roth IRA ($1000), Mine Vanguard, hers Fidelity. Both with automatic monthly reinvestments ($100 each) Should we set it and forget it.... Or should we invest it in other portfolios that they offer?

 

[BigMoneyJim]

I haven't looked at the Fidelity fund, but I looked at Vanguard's Retirement series and Lifestyle series. I 've come to like them very much and recently moved most of my IRA into Lifestyle Moderate Growth.

The usual advice is to gradually shift towards a higher bond concentration as you approach and enter retirement, which Retirement 2035 does. Personally I've decided there's an element of market timing in that and plan to stick with a consistent ratio (60/40 to 70/30) between now (at least 15 years before retirement) until death. That's why I went with Lifestyle over Retirement 20xx, but I'd have no problem with Retirement 20xx if I wanted to shift weights as I go.

My only objection to those funds was the Asset Allocation fund component as it's actively managed and shifts weight between bonds and stocks as the manager sees fit. I got over it.

 

[charlie]

one4g, you have the right idea. Just keep it up.

I like the Vanguard Target Retirement Funds myself.
My problem is that I like to tinker too much. If
you just put things on autopilot you won't be sorry
but if you get the itch to branch out then keep your
bets small and well diversified.


Cheers,

Charlie

 

[One4g]

I feel much better...thank you all. Once we get our debt under control. We Will be maximizing the contribution limits in about 2-3 years (thankfully, no CC debt).