FNK wrote:Here are the scenarios where TR funds shine brightest:
1) Your portfolio is small. Rebalancing a small portfolio is working below minimum wage. You should start with a TR fund and split it into components (if you really want to) once you get to $50-100K.
2) Your entire retirement portfolio is in tax-advantaged accounts. Tax optimization comes into play once you start taxable investing.
3) You don't want to learn all this stuff. Fire and forget. This presumes you're not going to add other funds to the mix.
4) You know this stuff but your heirs don't so you want to leave them foolproof guidance just in case. Step up in basis, convert everything to TR, move on.
Gviper wrote:Is there any advantages to the 3 fund portfolio vs. a Target Retirement fund that matched your desired allocation?
Iorek wrote:FNK wrote:Here are the scenarios where TR funds shine brightest:
5) You are not sure you have the discipline (or time or inclination...) to maintain your preferred asset allocation, including a reduction in your equity allocation as you age (according to whatever glidepath you may have selected).
Some people have the attitude that lifecycle funds are for "dummies" but I think they can also be tools to avoid behavioral problems than can reduce longterm returns. Sometimes realizing you might do a dumb thing is the smartest thing you can do.
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