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Best Target Date Funds

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  • Best Target Date Funds

    First 9 months of this year was W2 income, transitioning to 100% 1099 income starting in October. So, I'll have 3 months of 1099 income for 2021 and want to make sure I fill the buckets correctly as a 1099 like I did W2.

    I setup my solo 401k and Roth 401k with ETrade and I'm thinking I'm just going to set it and forget it with a Target Date Fund. My other 401k accounts use Fidelity Target funds (2045) and they've been gangbusters over these past few years. ETrade doesn't have Fidelity as an option.

    Looking at this article:
    https://www.morningstar.com/articles...021-and-beyond

    My two best options are TRRKX (T Rowe Price Retirement) which has a high Expense Ration or VTIVX (VanGuard Target Retirement) which has slightly lower rating but better expense ratio.

    Any others I should consider?


  • #2
    past performance does not predict future performance. Any index funds that haven't been gangbusters over the past few years is the outlier-the fidelity ones are the norm-they are not a positive outlier.

    If you want to stick to target date funds, there's nothing wrong with that. If you want a set it and forget it you need the funds with the lowest expense ratios. Anything that is 20 basis points or less is very reasonable

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    • #3
      If i had to pick one I would go with vanguard. the fee is the most important factor here

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      • #4
        Originally posted by h0mersimps0n View Post
        First 9 months of this year was W2 income, transitioning to 100% 1099 income starting in October. So, I'll have 3 months of 1099 income for 2021 and want to make sure I fill the buckets correctly as a 1099 like I did W2.

        I setup my solo 401k and Roth 401k with ETrade and I'm thinking I'm just going to set it and forget it with a Target Date Fund. My other 401k accounts use Fidelity Target funds (2045) and they've been gangbusters over these past few years. ETrade doesn't have Fidelity as an option.

        Looking at this article:
        https://www.morningstar.com/articles...021-and-beyond

        My two best options are TRRKX (T Rowe Price Retirement) which has a high Expense Ration or VTIVX (VanGuard Target Retirement) which has slightly lower rating but better expense ratio.

        Any others I should consider?
        Which Fidelity target date fund? They have multiple options and some are better than others. For example FFFGX is a 2045 target date fund with an expense ratio of 0.75 while FIOFX is an indexed target retirement fund 2045 and has an ER of only 0.12.

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        • #5
          Thank you for your replies. I also should've asked, if I want a set it and forget it style approach to the Solo 401k, is it apt to use the same target fund for the Roth 401k I opened too? Would you use two different target funds or approach investing differently between a solo 401k and the Roth 401k as an independent contractor?

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