I was wondering if anyone had an opinion on retirement date specific mutal funds. I'm seriously thinking of putting all our money into them. I'm *sick* of worrying about our investment accounts.
Texmati-- Knitter, Hindu, vegetarian, WOHM. Wife to superdad and mom to DS 24 months, and DD 8 months! .
I think they are good if you don't have the knowledge or energy to figure out the allocation yourself. That's what I have in my 401(k). I would just check the performance and expenses and ratings.
Married to a wonderful woman since 2010. Baby boy C arrived in June 2013!
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Well, they are safe and diversified and the most you can ask from the investment is to keep up with inflation. BUT now a days mutual funds are not that great, well hardly any investment is compared to 10 years ago. There just isn't much return on your investment.
That being said, that is probably what I will open next for a retirement fund (or some kind if index fund or a dividend paying fund; I have a very diversified stock, but I feel the angst that goes with it!). I will keep my current investment but hope with the mutual fund that I start, it will balance out my worry :).
Look for a very low, low maintenance fee fund
"Freedom" Funds are an excellent choice, IMO. They are naturally fairly diversified (generally include both foreign and domestic equities plus bonds & cash). They strategically reblance so you don't have to. Their expenses can vary, so take that into account.
Before selecting your fund, though, make sure it is the allocation you want (while the dates are a good guideline you might be more or less risk averse than the average investor). If you want to be more cautious you can invest in a fund for "older" people and if you want to be more agressive you can invest in a fund for "younger" people.