The close to retirement ones suffered that year. The 2030 target lost 25% in less than a year recently and hasn’t recovered. Ironically, the high risk ones have been less risky during COVID than the low risk ones.
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moseschrute@lemmy.world 2 weeks agoI like to go a step further and do a target-date retirement fund. I think Vanguard funds are based on index funds, but they will reduce how aggressively they invest as you approach your retirement date. And the fees are very low.
Poik@pawb.social 2 weeks ago
moseschrute@lemmy.world 2 weeks ago
Interesting. I’m targeting 2065 retirement, so I’ve got a long time. But I guess that fund could suffer from the same issue? Or maybe I should assume the same fate based on past events.
Poik@pawb.social 2 weeks ago
Not sure. I’m guessing interest rate stuff will mess with anything with bond holdings, so that probably had stuff to do with it. Other than that… I don’t know if I can convey a big enough shrug in text form.
EatATaco@lemm.ee 2 weeks ago
If you’re really hands off these are a good choice. But if you are willing to rebalance a couple of times a year, it’s unnecessary to pay the extra fees associated with these funds.
moseschrute@lemmy.world 2 weeks ago
I do like the automatic set it and forget it. Especially with scheduling transfers into investment accounts. I could probably get into rebalancing short-term, but I think long-term I would get bored and forget.
EatATaco@lemm.ee 2 weeks ago
Yeah it’s not for everyone, but I just have an event on my calendar for every six months, and I just rebalance when it goes off. Only takes a short while, especially if you are using some tool that will tell you what your weights are.
moseschrute@lemmy.world 2 weeks ago
Any tools you recommend? Also, how sure are you that the cost savings actually make it worth the effort? My gross expense ratio is 0.08% (I think I’m looking at the right number?)