{ "media_type": "text", "post_content": "Roth IRA and 401k currently all in 2060 target date fund. Should I exchange for all VTWAX or keep in TDF? I’m 23\n\n(VTWAX expense ratio: .10%, TDF is .15%)", "post_id": "60e49eabc5c0fa002444d4ea", "reply_count": 8, "vote_count": 3, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

Roth IRA and 401k currently all in 2060 target date fund. Should I exchange for all VTWAX or keep in TDF? I’m 23 (VTWAX expense ratio: .10%, TDF is .15%)

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As a general rule of thumb, I avoid any target date funds. 2 reasons. 1) even though it’s showing 0.15% fees, it’s a fund of funds and owns other mutual funds that also have fees. 2) you’re still weighted in bonds, why would you want a bond with these yields or your time horizon (40 years) ... Wont recommend any specifics but I have all my funds in aggressive growth (29yo). Also they tend to be poor inflation hedges.

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1. T Rowe price 2055 target funds top holdings are all mutual funds. Takes 30 seconds to look up. 2. Yes - my point is that I personally don’t want cash or fixed income in my retirement fund that’s 30 years from now. 4. Equity has shown historically to be a “hedge” against inflation. Higher amounts of fixed income/ cash = not as effective to grow on line with inflation.

Target date funds are for old people. Let your money work for you. Throw them in s&p vanguard funds

Target date funds are more expensive and usually have bonds. You’re 23. Dutch the bonds and hit 100% in on stocks. I recently changed from my TDF to VTSAX and VFIAX.

Same advice for 33 year old?

Same for a 43 year old. I will get there too!

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