Sound Investing 2 Funds for Life 2024 Update
4 snips
Apr 10, 2024 Chris Pedersen, expert in automating investing with 2-fund portfolios, discusses combining target-date and small-cap value funds for simple yet effective investing. He highlights the 2 Funds for Life approach, compares it to other portfolios, and emphasizes non-financial investments.
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Automating Investments
Investing can be automated through simple two-fund portfolios. This approach reduces the manual effort required in managing investments and adapting to changing risk tolerances.
Target Date Funds
Target date funds adjust their volatility based on the retirement timeline, providing a simple investment option. They are becoming the default choice for many new employees in retirement plans.
Consider Small Cap Value
Integrate a small-cap value fund alongside a target date fund to enhance diversification. Allocating even 10-50% to small-cap value can significantly improve expected returns.