Comments on: Target Date Mutual Funds Getting Cheaper http://www.fivecentnickel.com/2009/09/09/target-date-mutual-funds-getting-cheaper/ personal finance tips, tricks, and commentary Thu, 29 Jul 2010 13:24:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: JimmyDaGeek http://www.fivecentnickel.com/2009/09/09/target-date-mutual-funds-getting-cheaper/comment-page-1/#comment-134951 JimmyDaGeek Wed, 16 Sep 2009 02:50:16 +0000 http://www.fivecentnickel.com/?p=3541#comment-134951 Target date funds are not worth it. Their allocations schemes arbitrary enough so that 2 funds with similar objectives and investing in similar funds can have drastically different returns over the same time period. Be responsible and do your own bond/stock allocations once a year, just like you are supposed to rebalance. Target date funds are not worth it. Their allocations schemes arbitrary enough so that 2 funds with similar objectives and investing in similar funds can have drastically different returns over the same time period. Be responsible and do your own bond/stock allocations once a year, just like you are supposed to rebalance.

]]> By: Alissa http://www.fivecentnickel.com/2009/09/09/target-date-mutual-funds-getting-cheaper/comment-page-1/#comment-134772 Alissa Wed, 09 Sep 2009 14:58:32 +0000 http://www.fivecentnickel.com/?p=3541#comment-134772 I have a target retirement fund. As a "returning" student in grad school, I don't have time (literal or mental space) to handle doing anything with this money. I had to roll over a retirement account from an old job and this was the easiest way to do it. You can reduce fees with a Vanguard target retirement fund to ZERO by going paperless (otherwise I think it's the in the neighborhood of $10). And their minimum was pretty low when I opened mine (I think $1000). I have a target retirement fund. As a “returning” student in grad school, I don’t have time (literal or mental space) to handle doing anything with this money. I had to roll over a retirement account from an old job and this was the easiest way to do it.
You can reduce fees with a Vanguard target retirement fund to ZERO by going paperless (otherwise I think it’s the in the neighborhood of $10). And their minimum was pretty low when I opened mine (I think $1000).

]]> By: BG http://www.fivecentnickel.com/2009/09/09/target-date-mutual-funds-getting-cheaper/comment-page-1/#comment-134770 BG Wed, 09 Sep 2009 14:41:41 +0000 http://www.fivecentnickel.com/?p=3541#comment-134770 I'm a big fan of Vanguard's target date retirement funds (but not other companies versions). Not just because of cost but because of the 'index' nature of Vanguard funds -- and easy visibility into the contents of their funds. Vanguard puts me in control, whereas with the 'active management' version of target date funds, you are trusting in that fund manager (no thanks). One thing that worries me about the active management (target date funds), especially when the same fund manager(s) is managing multiple, if not all versions (2010 - 2040) is that there are probably strong desires to sacrifice one fund to prop up another. I just can't trust any company that much. I'll stick with the index varieties. I’m a big fan of Vanguard’s target date retirement funds (but not other companies versions). Not just because of cost but because of the ‘index’ nature of Vanguard funds — and easy visibility into the contents of their funds.

Vanguard puts me in control, whereas with the ‘active management’ version of target date funds, you are trusting in that fund manager (no thanks).

One thing that worries me about the active management (target date funds), especially when the same fund manager(s) is managing multiple, if not all versions (2010 – 2040) is that there are probably strong desires to sacrifice one fund to prop up another. I just can’t trust any company that much.

I’ll stick with the index varieties.

]]> By: Rosa http://www.fivecentnickel.com/2009/09/09/target-date-mutual-funds-getting-cheaper/comment-page-1/#comment-134769 Rosa Wed, 09 Sep 2009 14:01:46 +0000 http://www.fivecentnickel.com/?p=3541#comment-134769 We have our son's college fund in a target date fund. Otherwise, I'm not a big fan - our retirement & other investments are mixed enough that we don't need an automatic switchover as we age. (Plus, my partner's so conservative we already have way more bonds in the mix than I think we need.) We have our son’s college fund in a target date fund. Otherwise, I’m not a big fan – our retirement & other investments are mixed enough that we don’t need an automatic switchover as we age. (Plus, my partner’s so conservative we already have way more bonds in the mix than I think we need.)

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