3 ms·
>Monkey brain is much more dangerous than losing a few % APY ....and you don't even need a few percent to throw it in a target date fund that regularly rebalan
by Arainach 3y ago
>Monkey brain is much more dangerous than losing a few % APY
....and you don't even need a few percent to throw it in a target date fund that regularly rebalances for you
- satvikpendem 3y agoTarget date funds usually do worse than throwing everything into VTI and holding for 30 years.
- voidfunc 3y agoIsn't that expected because of the automatic re-balancing to minimize risk? I don't think anyone goes with target date funds thinking they are going to maximize returns because it's a tool to buy and forget.
- satvikpendem 3y agoBut buying VTI is also a tool to buy and forget and it maximizes returns compared to target date funds. They're lower due to fees as well as investing too much into bonds when young when it's not necessary, one should invest in bonds when closer to retirement instead.