Target Date Fund Assets Allocation

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
PaulAtreides
Posts: 43
Joined: Wed Jan 10, 2018 10:10 pm

Target Date Fund Assets Allocation

Post by PaulAtreides »

Hello,

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.

Thanks,
User avatar
BL
Posts: 9874
Joined: Sun Mar 01, 2009 1:28 pm

Re: Target Date Fund Assets Allocation

Post by BL »

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.
User avatar
Johnsson
Posts: 517
Joined: Mon Jul 17, 2017 2:28 pm

Re: Target Date Fund Assets Allocation

Post by Johnsson »

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.
'In theory there is no difference between theory and practice. In practice there is.' Yogi Berra
Post Reply