Your 401(k) Isn’t an Investment Plan

I’m one of these guys whose eyes roll back into my head when anybody says: “Investment Strategy”. I’m bored to tears with it. So I follow Clark’s advice and placed all my 401K and IRA’s in Target funds. I know some of you guys sneer and say I can do better than that! But remember, I’ve fallen asleep as soon as you start talking. I’d rather pick up a car fix it manual than try to read the pile of paperwork Vanguard and Empower send me. (snore).

glasspilot: If that works for you, great! Target date funds are available specifically for investors like you. You can set it, forget it, and pursue other things that interest you a whole lot more than investment strategies. :wink:

Target date funds are excellent choices in many situations. However, for some individuals a target date fund based on their planned retirement age may not be best choice. This includes persons with significant other assets and individuals who will retire with large pensions. The funds are tax inefficient in in taxable brokerage accounts.

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p1g1, I agree with your first sentence. The 2nd and 3rd sentence I fell asleep!

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To help your sleep pattern the next few nights :slight_smile:
An explanation of how having other investments in addition to the target date fund can change your overall asset allocation.
https://www.morningstar.com/funds/are-you-using-your-target-date-fund-incorrectly

A discussion of why target date funds are tax inefficient in taxable accounts (see the introduction and the section on multi-asset funds).
https://www.morningstar.com/personal-finance/which-investments-keep-out-your-taxable-account