Target Date Fund Assets Allocation

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Target Date Fund Assets Allocation

Post by PaulAtreides » Sat Jan 13, 2018 7:07 pm


Getting some insights on asset allocation in 401K for wife.

She has it all invested in a Vanguard Target Date Fund 2045 (VTIVX), she is 36.

I realize these funds are aggressive relative to person's age. its 90 Stocks, 10 bonds.

Is that too aggressive perhaps for her age? She has no knowledge about managing it, so I take care of that.

Would an 80/20 mix make much of a difference? This is for long term, 25-30 years.


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Re: Target Date Fund Assets Allocation

Post by BL » Sat Jan 13, 2018 7:14 pm

It is a good idea to look at all family accounts as one.
Maybe you could add more bonds somewhere else, such as your 401k, if she is satisfied?? Target funds don't have to be bought according to date, so she should feel free to change to a nearer date.

Some people are satisfied with 10% bonds, others may prefer age in bonds or somewhere in between.

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Re: Target Date Fund Assets Allocation

Post by Johnsson » Sat Jan 13, 2018 7:23 pm

It should be about her tolerance to risk. Some stay 100% equities all the way through retirement (usually the highest returns with the highest risk). Some might have 20 or 30% (or more) bonds at your wife's age. If the market dropped 50% in the next few months, what allocation would you wished you had? There is no correct answer other than what the two of you decide.

I was 100% equities until age 55 then went to 30% bonds... but that's just me. I sleep well at night. Others would not.

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