Moving to a later Target Retirement Fund
Moving to a later Target Retirement Fund
Just wanted to see some thoughts on moving between Target Retirement Accounts and how fast to proceed. I am currently in Vanguard TR2035. The glide path seems to be moving a little faster than I want now, and was going to move to TR2040 to add a bit more stocks for the next 5 years. Should I do this over time? All at once? Does it matter? The stock/bond percentage is about 7-8% change so nothing too drastic.
-
- Posts: 68
- Joined: Wed Feb 10, 2021 7:29 pm
Re: Moving to a later Target Retirement Fund
If that later TDF reflects the allocation you want throughout the entire amount of funds that are currently in the earlier TDF, then I don't know why you'd not just move all the monies over at once.
Re: Moving to a later Target Retirement Fund
Assuming this is in a tax-deferred or tax-free account, I see no reason to wait (not to mention, the current state of the market is a pretty good time to buy more stocks if that's what you want). I'm also assuming you're set on this asset allocation change and took the time to think it through.
- arcticpineapplecorp.
- Posts: 15080
- Joined: Tue Mar 06, 2012 8:22 pm
Re: Moving to a later Target Retirement Fund
If you want a different allocation now, you'd change your allocation now.
this isn't in a taxable account is it?
this isn't in a taxable account is it?
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: Moving to a later Target Retirement Fund
Move it all now to get the AA you want. FWIW, when my wife and I used target funds, we chose dates much farther out than our ages suggested for this exact reason — we wanted more equity exposure.
By the time you know enough to choose a good financial adviser, you don't need one. | bogleheads.org is my advisor: The ER is 0.0% and the advice always solid.
Re: Moving to a later Target Retirement Fund
Thanks for the replies. This is in our retirement account so no tax consequences. Yes, as I combine all of our accounts I feel we are getting a little more in bonds than what I like.
Re: Moving to a later Target Retirement Fund
Another thing you could do is direct the dividends and capital gains to be reinvested in a more aggressive (later year) target date fund.