I don't plan on touching the funds I stash away in my retirement account for a long time, so I just put everything into a 2055 target date strategy, which comes out to roughly 1/3 each in large cap, small cap, and emerging markets funds.
I was wondering if you all had incorporated your views of market valuations or the general economy when deciding how to allocate your contributions.
I don't recommend using target date funds - they're a wide blend across different investment strategies and don't adjust based on current market trends.
I recommend adjusting the specific funds you're investing in based on the current market landscape. For example, I am currently investing in:
Vanguard Institutional Index Fund (lots of blue-chip and F500s Emerging Market Fund A Socially Responsible Fund
Thanks for the feedback. I took a closer look at what went into target dates and saw the larger fees attached to some of the choices; reallocated towards a vanguard global stock market index.
Target dates might even under perform a mutual fund.
Typical Market and
S&P : 11% Mutual fund 7-8% before .5-1% fee Target date 5-8% before .5-1.8% fee
What I works for - (may not work for you) and is available in my 401k plan Index funds (S&P), Vanguard, Blackrock, TRowe, Fido, JPM, American Century
Mutual funds: US large cap for now,
Growth, Equity, Dividend funds. Look at the prospects, top ten holdings, total holdings, % of top ten holdings, Dividend yield, expense ratio, turnover ratio.
I want to buy brand name companies that might be expensive to buy individually.
Thanks! New allocations going to low load vanguard funds now. Global, emerging markets and small cap
even mix of:
-international index -dividend stock index -sp500 index -US midcap index -US small cap index
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