No. of Recommendations: 3
These target dates funds start out at high allocation to stocks and ramp down to more bonds and less stocks. Which is *opposite* to the studies that claim to show that it is better to ramp UP from low stock allocation to higher.
Don't the studies you're thinking of show it is best to ramp down the stock allocation going into retirement, which is what the target date funds do, then ramp back up as sequence of returns risk becomes less?
Not that it matters in my wife's case. We're just using it as a way to get a high stock allocation (90/10) very cheaply (0.08%). When it starts to ramp down in the year 2035 she can move it to target date 2090 or whatever she likes.
I set my grandkids accounts to half VASGX (80/20) and half VTI, for a net 90/10 asset allocation.
That's a good solution if you want a lower international allocation. Could also use VT if you want more non-US.
