It depends on how much time you want to spend on thinking about it. If the answer is "0", then a target date fund is your friend.I was serious. I figured getting the opposite side of the spectrum's opinion would be good. Thanks!
This is how the Lifecycle funds in the TSP work. It's okay, I guess. I manage my Roth IRA a little more hands on and aggressively.Source of the post I'm not a fan of target date (where you pick a fund based on the year you intend to retire) funds.
This is where I disagree with Columbia. Index funds take the individual Equity choices out of the mix. That's a good thing as most people don't have the time or ability to pour over dozens if not hundreds of financial statements and stay on top of each individual equity.It depends on how much time you want to spend on thinking about it. If the answer is "0", then a target date fund is your friend.I was serious. I figured getting the opposite side of the spectrum's opinion would be good. Thanks!
It you want to roll your own, that's certainly an option.
The "two X year old individuals can be quite different in terms of their risk preferences" argument is excellent. I would add one extra point in favor of investing on your own. Target date funds tend to be expensive in terms of fund fees (you can google quite a lot of research on the Internet about it), compared to what you'd pay on your own if you simply mimicked their investment allocation (which target funds disclose). In addition to that "mark-up", the investment companies typically favor their own funds when composing their target funds. That will be less of a problem for, say, Fidelity target date fund (composed of the cheap Fidelity mutual funds) - but it can be quite an issue if your investment options are managed by, say, Transamerica (which tends to be quite expensive).This is where I disagree with Columbia. Index funds take the individual Equity choices out of the mix. That's a good thing as most people don't have the time or ability to pour over dozens if not hundreds of financial statements and stay on top of each individual equity.It depends on how much time you want to spend on thinking about it. If the answer is "0", then a target date fund is your friend.I was serious. I figured getting the opposite side of the spectrum's opinion would be good. Thanks!
It you want to roll your own, that's certainly an option.
Allocation mix (ratio of equity to bonds etc...) is a much easier process. Each indivual has a different appetite for risk.
If I was 57 and still had a large mortgage or family obligations then I'd want a different mix than another 57 year old who had a significant real-estate portfolio or who was expecting a windfall from an inheritance or a nice fixed retirement program or whatever.
Everyone's risk appetite is different even if there ages aren't. That's where you make adjustments, not in individual equities but in the allocation of Stocks vs. Bonds. Target date funds try to take care of that for you as well.
First and most importantly, vast majority of retirement investment companies have investment advisers who can help you for free - over the phone or sometimes even via a personal meeting. [You just have to be aware that those advisers are not exactly independent, and so they will have the tendency to recommend the more expensive funds of their employer. You just need to insist that you look for "cheap index fund options" for your retirement.]I don't even know what the hell I'm looking at...
) advice from this board...Damn spoilers! All this time I though you did not post your funds. Here is what *I* (and only I - so this is absolutely NO INVESTMENT ADVICE) would do:@columbiaOnce you know the available investing options, please post them.
Not sure if this is what you are looking for. It's the best I could do to get it into the thread.
Yeah, but you were wrong about China. I mean remember that time you were so wrong about China and we all celebrated how right EPP was?Going into today, the S&P 500 is off from the all time high by 8%.
It dropped 17% in 2011.
Make of that what you will.
I am afraid to check the 401k.
On the bright side, it's a good chance to buy low.
http://www.stockgumshoe.com/reviews/lif ... -security/I've been hearing radio commercials about Americans 'piggy backing' the Canadian social security system. What is the meaning of this?
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