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I bury my cash in a coffee can. Stock market scares me.
Yesterday I heard it is a good idea so I think we're OK
I have most of my money in one of those accounts, and my return has been phenomenal
I have had phenomenal returns on my Vanguard target retirement fund too. And low cost
^yes, target funds have high fees and on average don’t outperform the market. You should just invest in the market or do a combination of market and bonds.
Vanguard Institutional target funds have extremely low fees, on par with an index fund. If there’s an argument against target date funds it’s that they are a touch conservative, but really they’re fine.
What was the reasoning op?
Ours is really good - returns and expenses wise. Typically, target retirement funds have high fees, which might be why you heard what you heard - but would be curious to hear what you did.
If you have a better fund in mind, go for it - but I don’t think there’s a downside to keeping funds there
if you’re <40 you may be better of just going 100% into a total market equity index because the fees will be marginally lower...the target retirement funds just reweight bond/equity balances as you age to reduce your equity risk as you near retirement
SP500 index fund
They aren’t supposed to outperform the market. They have a component of bonds that will lower risk and return
Target date funds, with low fees, are an excellent investment vehicle — they balance your portfolio across equities / fixed income based on your assumed risk tolerance (younger = higher risk / reward profile = higher allocation to equities). As others have said, high fees can kill returns, but our target date fund is a great, safe “market return” type investment.
Agree with M1
Fideblity Blue chip growth ... 28% in last year