Retirement Date Funds

[Angio333]

What do you guys think of target date retirement date funds such as T. Rowe Price's Retrirement 2030 Fund?

[gekkoplus]

I have my traditional and Roth IRA in retirement date funds, and currently both portfolios are getting quite a beating. But that is same for any non-sector specific or speciality fund I guess.

I know that these retirement date funds charge more fees compared with index funds. I would say invest in index funds that track large cap companies that periodically offer dividends and you will do just as fine.

[maat55]

What do you guys think of target date retirement date funds such as T. Rowe Price's Retrirement 2030 Fund?

I always look at the longterm performance of any fund. All those funds do is adjust risk over time. It doesn't mean that they perform well at anytime. You should pick a fund that is performing well over a ten year period. I have PRNEX, it has a 39 year track record of over 12% and has done app. 14 to 15% the last 10 years. It also is with T. Rowe Price. Because it is a speciallty fund, I will keep my eyes on it as should any fund.

[disneysteve]

I know that these retirement date funds charge more fees compared with index funds.

Vanguard's don't. Their 2030 fund has an average ER of .21%. The 5 funds that make up the fund have ERs of .15, .19, .22, .22 and .37%. You just pay what you would pay if you owned each fund individually.

OP, I think these are a perfectly good option for someone who wants to make things easy, set things on autopilot and not worry about picking funds, rebalancing, etc. Had these funds been available back when I was starting out, I might have gone that route. Too much trouble to switch now.

Just check out each company's offerings. All 2030 funds aren't the same, for example.

[Aleta]

I have Vanguard's Target Retirement Funds and it is a one-stop solution to me. They are diverisified into index funds containing stocks and bonds and US and international as well. I have noticed that they change their allocations from one to month depending on the state of the economy. I like them. I send in one payment and it is diversified.

I have heard that T Rowe Price Price is a good company. As for fees, Vanguard's are low as Steve has already mentioned.