- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Vanguard target retirement fund vs SP500
Posted on 1/11/23 at 8:17 am
Posted on 1/11/23 at 8:17 am
I am currently 29 and I plan to retire around 2050 with a full salary pension. I try my best to max out my Roth IRA and invest those funds into risky single company stocks in that such as AMZN, META, SHOP, ABB, etc.
I am conservative with my workplace Roth acount.
I am currently contributing my workplace Roth investments all into Vanguard 2050 Target Date retirement fund at the moment, which looks like it has me at around 20% bonds.
Would I be better off just buying SP500 (VOO) at my age and then switching the allocation over to the Target date in about 10 years so that I am a bit more aggressive with this acount or should I be ultra conservative with it given my investment strategy stated above.
I am conservative with my workplace Roth acount.
I am currently contributing my workplace Roth investments all into Vanguard 2050 Target Date retirement fund at the moment, which looks like it has me at around 20% bonds.
Would I be better off just buying SP500 (VOO) at my age and then switching the allocation over to the Target date in about 10 years so that I am a bit more aggressive with this acount or should I be ultra conservative with it given my investment strategy stated above.
This post was edited on 1/11/23 at 8:25 am
15
Posted on 1/11/23 at 8:22 am to tigersint
quote:
which looks like it has me at around 20% bonds.
avoid
Posted on 1/11/23 at 8:24 am to Billy Blanks
So just put it all into SP500 or maybe some into international and some into SP500?
My first year having the acount I had just selected the 1% management fee where they rebalance for you and select your funds but I looked at what they had me in and what the Vanguard Target Date fund selected and it was essentially the exact same strategy but I was giving an additional 1% for it.
My first year having the acount I had just selected the 1% management fee where they rebalance for you and select your funds but I looked at what they had me in and what the Vanguard Target Date fund selected and it was essentially the exact same strategy but I was giving an additional 1% for it.
Posted on 1/11/23 at 8:25 am to tigersint
At 29 I'd prefer going aggressive and do less bonds. Could you change the target date?
Posted on 1/11/23 at 8:30 am to tigersint
My understanding is that target date funds have higher expenses.
You can do this yourself.
At 29, most would suggest a high % of stocks like 90% or more.
You can do this yourself.
At 29, most would suggest a high % of stocks like 90% or more.
Posted on 1/11/23 at 9:01 am to tigersint
If you have a sizeable pension and are very certain about it, you might consider that as the stable/conservative portion of your portfolio.
I'm retired and have no bonds because I have a federal pension and dont need the added security of a conservative bond allocation. Worst case, I scale back spending so I dont dip into investments while market is down.
I'm retired and have no bonds because I have a federal pension and dont need the added security of a conservative bond allocation. Worst case, I scale back spending so I dont dip into investments while market is down.
Posted on 1/11/23 at 9:01 am to tigersint
VOO. In 30 years, you will have so much cash that you can just divert the dividends to your account and never touch principal.
Posted on 1/11/23 at 9:10 am to tigersint
Few years older than you. You're not touching this for 30 years.
Get out of the Target Date and dump it all in VOO.
Get out of the Target Date and dump it all in VOO.
Posted on 1/11/23 at 9:32 am to LSUShock
So I looked at the allocation and it looks liek the target retirement fund only had 9% allocation to bonds.
But at this age I likely don't need any right?
Would it be advised to just go 100% VOO or something like 80% VOO 20% Internal, maybe even a smaller 3% to small and medium cap companies as well.
But at this age I likely don't need any right?
Would it be advised to just go 100% VOO or something like 80% VOO 20% Internal, maybe even a smaller 3% to small and medium cap companies as well.
Posted on 1/11/23 at 9:45 am to tigersint
Just FYI, the passive bond funds are most concentrated in securities with the most issues and the highest prices. If you want exposure to bonds, buy bonds not bond funds. Stay away from target date but your ROTH and SPY are basically the same trade.
Posted on 1/11/23 at 9:59 am to tigersint
I’m 33 and have it all in a SP500 index
Posted on 1/11/23 at 10:31 am to tigersint
SP500 low cost fund and don’t look back.
The target funds were more expensive - have not checked lately.
At your age, no bonds needed. If you do it right, you will never need bonds….as the previous poster stated, sit back and collect dividends.
The target funds were more expensive - have not checked lately.
At your age, no bonds needed. If you do it right, you will never need bonds….as the previous poster stated, sit back and collect dividends.
Posted on 1/11/23 at 10:58 am to tigersint
People are really skewed by the low rate environment of the last decade or so. Bonds are paying a decent amount now. 9% allocation isn't terrible.
I know retirees that only need like 2% withdrawal to live and they are very happy right now because they actually have options other than stocks.
I know retirees that only need like 2% withdrawal to live and they are very happy right now because they actually have options other than stocks.
Posted on 1/11/23 at 11:22 am to lsu13lsu
OP is 29 and not a retiree any time soon. Portfolio mix shift should happen as one approaches retirement.
Posted on 1/11/23 at 11:37 am to tigersint
quote:
full salary pension
Seriously, I wouldn't do a target date fund until around 10 years out (if at all). I think VOO or whatever broad stock market vehicle you prefer is going to be (while volatile) a much better performer.
Good luck!
This post was edited on 1/11/23 at 11:39 am
Posted on 1/11/23 at 12:01 pm to Ace Midnight
VOO vs VFIAX
Any pluses or minuses one over the other? ETF vs Mutual Fund
Any pluses or minuses one over the other? ETF vs Mutual Fund
Posted on 1/11/23 at 12:52 pm to tigersint
The problem with all target retirement funds is over time they move more and more of your money into low performing bonds as capital preservation basically. Pretty old school thought these days to move to a lot of bonds as you get close to retirement because the S&P and stock market as a whole have made bonds look silly for decades now.
It's hard to go against the S&P, if you want to diversify a little more can go with a total stock market index or get some small and mid cap ETFs as well for more exposure across the landscape.
You can do some international but the returns there the last few decades overall have been pretty poor compared to US stock returns.
It's hard to go against the S&P, if you want to diversify a little more can go with a total stock market index or get some small and mid cap ETFs as well for more exposure across the landscape.
You can do some international but the returns there the last few decades overall have been pretty poor compared to US stock returns.
Posted on 1/11/23 at 12:55 pm to DowntheBayouTiger
quote:
VOO vs VFIAX
Any pluses or minuses one over the other? ETF vs Mutual Fund
They are essentially the same with extremely similar expense ratios. 1 advantage VOO has over VFIAX is it can be traded at any point in the day vs. VFIAX price is set only once a day. This doesnt really matter too much in a retirement account though.
Posted on 1/11/23 at 3:09 pm to tigersint
I use VFIAX and VWUSX, both Vanguard. VFIAX is S&P 500 and the other is US Growth. The US growth one has suffered the past year - a lot - but long term I expect both to be very good for me. Hell, until the past year they’ve been very good. I’m just gonna keep maxing out each month and let it ride. I also have SWPPX in my 401k, which is also an S&P fund. I really like S&P 500 funds .
My wife, however, has their Target Date 2045 fund so we can get a bit more diversification to sort of compliment mine. Between all that and her pension, I am 100% confident in our retirement.
. My wife, however, has their Target Date 2045 fund so we can get a bit more diversification to sort of compliment mine. Between all that and her pension, I am 100% confident in our retirement.
This post was edited on 1/11/23 at 3:11 pm
Posted on 1/11/23 at 4:54 pm to tigersint
I'm 38 with a work 401K that has me invested into a 2050 target date. Make sure i match into it.
Rest is my own portfolio of maxing roth in
70% VOO
15% each of SCHD & QQQ
You do you, but I like getting more bang for my buck while I'm young. Compare lifetime returns on Target date vs VOO and you should get your answer.
Rest is my own portfolio of maxing roth in
70% VOO
15% each of SCHD & QQQ
You do you, but I like getting more bang for my buck while I'm young. Compare lifetime returns on Target date vs VOO and you should get your answer.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News