Comments on: The One-Decision Portfolio: Target Retirement Funds http://www.obliviousinvestor.com/the-one-decision-portfolio-the-advantages-of-target-retirement-funds/ Index Investing: The Oblivious Investor Wed, 10 Mar 2010 23:47:20 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Manshu http://www.obliviousinvestor.com/the-one-decision-portfolio-the-advantages-of-target-retirement-funds/comment-page-1/#comment-1237 Manshu Wed, 25 Mar 2009 22:49:43 +0000 http://www.obliviousinvestor.com/?p=2449#comment-1237 Yes Mike, you are right, I am sorry that I got that backwards. I just question whether it is practical to buy just one fund for your whole life with all your money. Yes Mike, you are right, I am sorry that I got that backwards. I just question whether it is practical to buy just one fund for your whole life with all your money.

]]> By: Mike http://www.obliviousinvestor.com/the-one-decision-portfolio-the-advantages-of-target-retirement-funds/comment-page-1/#comment-1236 Mike Wed, 25 Mar 2009 21:50:01 +0000 http://www.obliviousinvestor.com/?p=2449#comment-1236 Hi Manshu. I think you have it backwards. Target retirement funds own less debt investments (bonds) when you're young, and more when you're old. In other words, they adjust from a more aggressive allocation toward a less aggressive allocation as the investor gets older. Also, what's wrong with investing in a fund for your entire lifetime if it's a good fund? (For example, what would be wrong with investing for several decades in a low-cost index fund that tracks the Wilshire 5000?) Hi Manshu.

I think you have it backwards. Target retirement funds own less debt investments (bonds) when you’re young, and more when you’re old.

In other words, they adjust from a more aggressive allocation toward a less aggressive allocation as the investor gets older.

Also, what’s wrong with investing in a fund for your entire lifetime if it’s a good fund? (For example, what would be wrong with investing for several decades in a low-cost index fund that tracks the Wilshire 5000?)

]]> By: Manshu http://www.obliviousinvestor.com/the-one-decision-portfolio-the-advantages-of-target-retirement-funds/comment-page-1/#comment-1235 Manshu Wed, 25 Mar 2009 21:43:17 +0000 http://www.obliviousinvestor.com/?p=2449#comment-1235 The heart of a Target Retirement Fund idea is that you should have more debt when you are young and less debt as you keep getting older. So really, not only do you need to invest all your money in one particular fund, you need to keep doing that throughout your life or at least for a very long time. I don't see this as a practical thing at all. The heart of a Target Retirement Fund idea is that you should have more debt when you are young and less debt as you keep getting older. So really, not only do you need to invest all your money in one particular fund, you need to keep doing that throughout your life or at least for a very long time. I don’t see this as a practical thing at all.

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