When I setup my 401k 8 years ago, the default investment choice was a JP Morgan 2055 Target Date Fund. Set it and forget it.
About 2 years ago, I started looking at the Fees and returns compared to a total market index fund and saw that both the fees were lower and returns over a 10-Year period were significantly higher with the total market fund.
I switched my investment allocation to 50/50 between the 2 funds.
I am wondering if it would be worth it to switch to 100% allocation to the Total Stock Market fund and if these target date funds are at least in part a default because it gives these funds an excuse to “actively manage” and charge higher fees. I do know it auto-rebalances as I age but I can manage that every few years if I deem it necessary to move more out of equities.
Wondering how some of you have handled situations like this or what your 401k allocations might looks like.
For context, I’m 35 with no debt other than a mortgage, and a medium to high risk tolerance.
Submitted January 17, 2024 at 11:46PM by Fhbob1988 https://ift.tt/aBnUt3q
