Have a Target Date Fund, What Else Should I Get?

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CaliGirl
Posts: 35
Joined: Wed Jan 18, 2017 2:09 am

Have a Target Date Fund, What Else Should I Get?

Post by CaliGirl » Mon Feb 06, 2017 12:23 am

Hi everyone.

I'm going to be 51 years old next month. I just invested for the first time last month. I put my money in the Vanguard 2045 Target Date Fund. Yes, it's aggressive, but I don't plan to retire at 65 (I just started a new business). I'll be in my 70's, maybe even my 80's before I plan to start withdrawing. The fund is in a Roth.

I don't want to put all my eggs into one basket, however. So, I'm wondering what else I should invest in. A real estate fund maybe? Another mutual fund? Maybe even another target date fund? I am also building up a few bank accounts.

Thanks!

Elbowman
Posts: 482
Joined: Tue Apr 03, 2012 2:25 pm

Re: Have a Target Date Fund, What Else Should I Get?

Post by Elbowman » Mon Feb 06, 2017 12:30 am

The point of a Target Date Fund, and mutual funds in general, is they are not "just one basket". You Target Date Fund has over 10,000 stocks and bonds from around the world, and under some very reasonable definitions of "diversification", it is hard to be more diversified than that fund. At this point you should focus on savings rate.

Also, remember retirement isn't always by choice :( .Health problems, among other things, can force retirement upon you.

Nate79
Posts: 3052
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

Re: Have a Target Date Fund, What Else Should I Get?

Post by Nate79 » Mon Feb 06, 2017 12:45 am

Since you started a businesses have you opened a self directed retirement accounts? Sorry, I'm not an expert on them but perhaps this would be a very important next direction to have access to more tax deferred space.

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