Moving to a later Target Retirement Fund

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denon
Posts: 13
Joined: Thu Oct 04, 2018 12:55 pm

Moving to a later Target Retirement Fund

Post by denon »

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.
spickups09
Posts: 68
Joined: Wed Feb 10, 2021 7:29 pm

Re: Moving to a later Target Retirement Fund

Post by spickups09 »

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.
pasadena
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Location: PNW

Re: Moving to a later Target Retirement Fund

Post by pasadena »

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.
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arcticpineapplecorp.
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Re: Moving to a later Target Retirement Fund

Post by arcticpineapplecorp. »

If you want a different allocation now, you'd change your allocation now.

this isn't in a taxable account is it?
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mrc
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Re: Moving to a later Target Retirement Fund

Post by mrc »

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.
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Topic Author
denon
Posts: 13
Joined: Thu Oct 04, 2018 12:55 pm

Re: Moving to a later Target Retirement Fund

Post by denon »

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.
jtdavid
Posts: 216
Joined: Thu Mar 01, 2007 11:21 am

Re: Moving to a later Target Retirement Fund

Post by jtdavid »

Another thing you could do is direct the dividends and capital gains to be reinvested in a more aggressive (later year) target date fund.
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