[Daryl]

Should I stick with my target date fund or move my 403b to the S&P 500 for potentially faster growth?

I’m looking for opinions on which option might offer a stronger long-term return while balancing risk.

Have you made a similar switch, and what was your experience?

[George]

You can pick the 2070 target fund if you want to be more aggressive. It doesn’t have to match your retirement age.

[John]

age? timeline? Just the fees of a target date fund scare me. Target date funds are very conservative too… too much so at a minimal push the date as far as you can and keep doing that.

You’re lucky to have choices in your 403b. I had none and it was heavily fee laden.

The only nice thing is it balances for you if you care about that. I did 100% stock right up until RE

[Kyle]

Target date funds almost always have higher fees because they are more actively managed. NEVER use a target date fund if you have an S&P equivalent!

[Dustin]

Target date funds are purely a vehicle used to charge fees. All they do is move into more bonds and treasuries close to retirement.

The fees can literally cost you 100’s of thousands over 30 to 40 years of investment, even if they seem small.

You can google the target date funds to see what they hold, and literally copy it for free.

If you’re going to use a target fund, in my opinion you might as well just use a reputable and independent FEE only advisor.

Investing has become so easy in the past decade, don’t stress about it too much.

[Philip]

Fees usually higher for the target fund. What is your potential retirement year?

[Hunter]

I wouldn’t put anything in a target date fund.
I’m 95% S&P index,
26%YTD
24% last year
22% the year prior.

I invest to make money not lend it by owning bonds.

[Shanelle]

I just switched mine to the S&P. Side note, you have to call your brokerage and let them know that you are switching because all the future contributions will go into the S&P but everything that you’ve had before stays in the Target date fund along with the fees.

[Author]

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