Target Funds....are they a good idea?

[devans0]

A lot depends on the fund. Costs, equity creep in managed funds, and re-balancing too soon are a few of the dangers. I don't trust managed fund families to not use them to hide their mistakes.

 

[LightningDawg]

A lot depends on the fund. Costs, equity creep in managed funds, and re-balancing too soon are a few of the dangers. I don't trust managed fund families to not use them to hide their mistakes.

The nice thing about Vanguard Target 2050 fund is that it is made up of:

63% Vanguard Total Stock Market Index Fund Investor Shares

27% Vanguard Total International Stock Index Fund Investor Shares

10% Vanguard Total Bond Market II Index Fund Investor Shares†


By using ONLY Vanguard index funds, costs are kept down, and yet there is the desired diversification. He can always change the target date periodically if desired.

 

[MasterBlaster]

The nice thing about Vanguard Target 2050 fund is that it is made up of:

63% Vanguard Total Stock Market Index Fund Investor Shares

27% Vanguard Total International Stock Index Fund Investor Shares

10% Vanguard Total Bond Market II Index Fund Investor Shares†


By using ONLY Vanguard index funds, costs are kept down, and yet there is the desired diversification. He can always change the target date periodically if desired.

Probably better right now than the traditional "Age in Bonds" allocation.

 

[Aiming_4_55]

Vanguard Target Fund 2035... not much difference than the previously posted 2050 fund. I'll be watching asset allocation as I get closer to FI.

1 Vanguard Total Stock Market Index Fund Investor Shares 62.3%
2 Vanguard Total International Stock Index Fund Investor Shares 26.6%
3 Vanguard Total Bond Market II Index Fund Investor Shares* 11.1%

Total100.0%

 

[Gumby]

Interesting article from CNBC on the pros/cons of Target Date Funds

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