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Vanguard Target Date 2045 (suitable for someone born in 1980, looking to retire in about 20 years) is, as of September 2024, at 50.3% Total US Market Institutio
by mandevil 1y ago
Vanguard Target Date 2045 (suitable for someone born in 1980, looking to retire in about 20 years) is, as of September 2024, at 50.3% Total US Market Institutional Shares, 33.2% Total International Investor Shares, 10.9% Total US Bond Investor, and 4.8% Total International Bond Institutional.
Fidelity's 2045 fund is even higher in the market, they are 10% bonds and 95% equity (they appear to be levered by 5%).
- citizenpaul 1y agoITs been a while. I'm referring to the ones that have been presented for choices in various 401k's over the years. Those ones always seem quite terrible. I basically just ignore them now. There may be others that I've not seen outside the the restrictions of 401k's. Maybe I should take a another look and update my knowledge on them.
- mandevil 1y ago401(k)'s almost always have terrible choices for funds, because of the principal-agent problem. The agent of the company makes the choices on what funds are available but it is the principals as employees who pay the fees. In half-a-dozen career stops over 20 years, I've seen good fund choices in the 401(k) maybe twice? Which is why whenever I leave a job I always roll it over into my trusty Vanguard IRA as quickly as I can, and get to have my choices for funds. (401(k)'s and IRA's are treated differently in a divorce, which fortunately has not been a problem for me, otherwise having a IRA is so much better than a 401(k). If it wasn't for the employer matching funds I would never do a 401(k) and just do a IRA.)
- citizenpaul 1y agoCool so I'm not mistaken but I overgeneralized my thoughts that there are no good target date funds. Just the 401k ones suck, so I learned something. >I always roll it over into my trusty Vanguard IRA Same.