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Target Date Fund To Capture 63% Of All 401(k) Contributions By 2018
Interesting article. There is one error in the article though. The article states: "In 2005, target date funds held less than $100 million in total assets. After several years of double-digit growth — in some cases as high as nearly 50% annually — target date funds reached more than $500 million in assets as of 2013, according to a report by Morningstar Inc."
The Vanguard Target Retirement 2020 fund alone has 25 billion dollars of assets.
I think for most workers (not necessarily the people who visit this site)target funds are just fine.Problems occur if the target funds have a high er but in that case there is unlikely to bea good choice other than perhaps an S&P 500 fund.
VBINX with an ER of .24% and 60/4 stocks to bonds should do OK over the decades although it's pretty conservative for a 20-something. You're both right so long as the ER is low and enough stocks are included; and target date funds remove the anxiety of determining your own ratios. Beats doing nothing by a mile.
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"In 2005, target date funds held less than $100 million in total assets. After several years of double-digit growth — in some cases as high as nearly 50% annually — target date funds reached more than $500 million in assets as of 2013, according to a report by Morningstar Inc."
The Vanguard Target Retirement 2020 fund alone has 25 billion dollars of assets.
I find most Target Funds to be awful.
Last time I looked, most did not beat a simple balanced index fund, like VBINX.
No?
You're both right so long as the ER is low and enough stocks are included; and target date funds remove the anxiety of determining your own ratios. Beats doing nothing by a mile.