Jill on Money with Jill Schlesinger Should I Ditch the Target Date Fund?
12 snips
Aug 28, 2025 Listeners dive into the pros and cons of ditching target date funds for more aggressive investments. The conversation explores the importance of examining personal risk tolerance and market volatility. A compelling strategy emerges, suggesting an 80% stock to 20% bond allocation. Emphasis is placed on balancing investments with savings for financial security. Plus, the hosts encourage seeking professional advice as year-end approaches, making it a perfect time for financial reflection and growth.
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Replace TDF With Simple Index Mix
- Do consider replacing a target date fund with a few low-cost index funds to gain control and slightly lower fees.
- Reallocate only if you will stay the course through big market swings and want that extra equity exposure.
Pension+Social Security Lowers Investment Pressure
- Insight: If pension plus expected Social Security cover projected expenses, you can justify a more aggressive portfolio.
- This income cushion reduces the urgency to protect every dollar in investment accounts.
2035 Fund Is Essentially 60/40
- Insight: The BlackRock 2035 fund Matthew owns looks roughly like a 60/40 mix with about 35% bonds and 20% international exposure.
- That allocation means a target date fund may underperform during strong bull markets compared with higher-stock mixes.
