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While that is what I have mostly done, the retirement date funds I have had access to tend to have significantly hire fees (sometimes close to double) compared
by Bedon292 8y ago
While that is what I have mostly done, the retirement date funds I have had access to tend to have significantly hire fees (sometimes close to double) compared to the index funds. Not sure their performance actually justifies it either.
- toomuchtodo 8y agoIs this through a 401k or through individual IRA/investments accounts? If the latter, I'd suggest moving to a provider such as Vanguard, with very low expense ratios [1]. If through your 401k, I would suggest encouraging your employer to seek out options where you're not overcharged (preferably as a group of employees, as there is strength in numbers). Failing that, max out your 401k with just enough funds to obtain the full employer match, then fill your IRA(s), and then your taxable accounts. [1] https://investor.vanguard.com/mutual-funds/profile/VTIVX https://investor.vanguard.com/mutual-funds/profile/VTIVX (example fund, Vanguard Target Date 2045 fund, 0.15% expense ratio)
- Bedon292 8y agoEmployer 401k, I think my current one is 0.39% for target 2055. I hate it, but doesn't seem to be interest in changing. I think I will push for it again soon though.
- berberous 8y agoEven the Vanguard retirement funds though have expense rations that are multiples of the underlying funds, assuming you have enough cash to qualify for admiral shares of the underlying funds. But you get automatic rebalancing and lower minimums. 0.15% is low enough though that I don't personally worry about the difference that I'm not saving by switching to manually investing in the underlying funds.