VTSAX vs. Taget Date for Roth IRA

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dodgersummer
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Joined: Tue Jan 10, 2017 2:08 pm

VTSAX vs. Taget Date for Roth IRA

Post by dodgersummer »

Do bogleheads recommend Roth IRA's in VTSAX or a target date retirement fund? Thanks.
rkhusky
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Joined: Thu Aug 18, 2011 8:09 pm

Re: VTSAX vs. Taget Date for Roth IRA

Post by rkhusky »

dodgersummer wrote: Wed Oct 30, 2019 1:37 pm Do bogleheads recommend Roth IRA's in VTSAX or a target date retirement fund? Thanks.
Depends on what is in your other accounts, but, in general, either is fine.
retiredjg
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Re: VTSAX vs. Taget Date for Roth IRA

Post by retiredjg »

What you put Roth IRA depends on what you want for the portfolio and what you have/have available in the other accounts. Total stock and target date funds are both fine in Roth IRA.
retired@50
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Re: VTSAX vs. Taget Date for Roth IRA

Post by retired@50 »

dodgersummer wrote: Wed Oct 30, 2019 1:37 pm Do bogleheads recommend Roth IRA's in VTSAX or a target date retirement fund? Thanks.
Some purists would recommend VTSAX over a target date fund, since it is 100% equity. A target date fund with a distant date is mostly equity, but not entirely. As the date draws near, the percentage devoted to bonds will grow as appropriate for your age. If you have access to a 401k plan with a decent low cost bond index fund, you could hold your bond allocation there.

The purist argument for holding 100% equity in a Roth IRA is that stocks have the greatest potential for long term growth, so, since a Roth IRA won't be taxed upon withdrawal, you'd like that account to be the biggest it can be. Regards,
This is one person's opinion. Nothing more.
Texanbybirth
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Joined: Tue Apr 14, 2015 12:07 pm

Re: VTSAX vs. Taget Date for Roth IRA

Post by Texanbybirth »

I have the appropriate target date fund in each of our (wife and mine) Roth IRAs. They are retirement accounts for us, and we are too simple to use anything but TDFs for retirement.
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
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