[Noah]

I currently have my 401k investing into a vanguard 2060 target retirement. Turning 23 next month and brand new to investing.

Do I keep it in target retirement or go split it up into 25% in VTSAX, VFIAX, VTIAX, VTWAX?

From my research the target retirement isn’t aggressive and has 10% bonds which is frowned upon for investing at a young age.

I’m looking to set it and forget.

[Matthew]

IMO don’t bother with TDFs, they start way to conservative, and get even more conservative way too soon. Starting out, you literally only need one fund.

I’m currently 100% VTI, though will add small cap in the near future.

[Sean]

I generally think target retirements are too conservative, but that is definitely not the split I would do. That’s an INSANE amount of overlap.

[Nate]

Honestly for simplicity that’s a great choice. There is a school of thought that when you are in the wealth accumulation phase you don’t need a mix of bonds. I put 100% into VTSAX mostly cause that what JL Collins says to do. Then you can set it and forget it and the expense ratio is a little lower.

[Tony]

100% VTSAX for next 35 years, is what I would do. I’m 54 and about to retire. I have zero bonds. However, I do have a few rental properties and a pension coming. But you’re so young. Go aggressive.

[Todd]

With me even getting closer to retirement at 42 is mostly VTSAX still. Being in young 20’s the huge importance is putting as much away as possible.

[Mike]

Of the professional financial advisors I know – including CFPs – easily more than half of them invest in TDFs for their retirement savings. I personally think they’re possibly the best retail investment product ever conceived.

For the low cost of (potentially) less than 0.1%, you get a professional asset allocation (based on age), automatic re-allocation, automatic rebalancing, exceptional diversification, and professional management. Your job is to simply plough in the dough. It’s the ultimate set it and forget it investment.

[Author]

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