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re: question regarding target date retirement fund

Posted on 7/21/14 at 12:14 pm to
Posted by Sigma
Fairhope, AL
Member since Dec 2005
3643 posts
Posted on 7/21/14 at 12:14 pm to
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
27067 posts
Posted on 7/21/14 at 12:16 pm to
I haven't played golf in ages
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
48945 posts
Posted on 7/21/14 at 1:15 pm to
What course of action do you take once you get the target date to Admiral shares
Posted by Sigma
Fairhope, AL
Member since Dec 2005
3643 posts
Posted on 7/21/14 at 1:21 pm to
quote:

What course of action do you take once you get the target date to Admiral shares


TD funds don't offer admiral shares. To get admiral shares, you have to build your own portfolio out of admiral shares of the individual funds.
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
48945 posts
Posted on 7/22/14 at 7:18 am to
Oh
Posted by Venelar
The AP
Member since Oct 2010
1134 posts
Posted on 7/22/14 at 8:23 am to
quote:

What course of action do you take once you get the target date to Admiral shares


Basically you can mimic the target date funds by holding the 3 funds separately instead of the "fund of funds" that the target date is.

IIRC the entry point for admiral shares is 10k. So you would need at least 30k invested to split it up and hold admiral shares in 3 different funds.

Even then (according to calculations in the thread) the benefit of splitting them up is minimal. One thing I'll say about the target date funds is they are a little heavy on bonds to start. A lot of folks recommend choosing a date 10ish years past your expected date so you have less bonds when you start.
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