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7 reasons I DO use a target retirement fund

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  • #46
    *The main argument it seems is that one's work retirement accounts do not have Vanguard Target Funds as an option. As an independent contract I have the joy/responsibility of setting up my own retirement accounts and can make them as simple and as large as they can legally be. But if you have a W2 don't fret since Vanguard Target Funds are becoming more frequently one of the options. Sadly 401ks made by employers still have great limitations.

    The secondary argument is the lack of the ability to tilt which no one has convinced me which way to tilt is best so I label that as macro "guessing the market" (versus micro "guessing the market" aka stock picking).

    The tertiary argument is "Where is the real estate, commodities, or alternatives?". My response is two fold. First, indirectly you are investing in all alternatives by buying companies that own and use the above. Secondly, how does a Target Fund stop you from buying some of these on the side?

    Maybe some of my thinking is simplistic but I think these funds are actually complexly logically sound, so (if able) why not just go all the way for these funds, cheap both in time cost of the personal management and expense ratios of the professional management.