Great news for target date fund Investors PLUS 7 more Q&A's

In this podcast, Paul answers recent questions from his readers, video viewers and podcast listeners including how best to enter the market in these uncertain times, which equity asset classes to hold. small-cap value strategies and more.

1. In your book, “First Time Investor: Grow and Protect Your Money,” you write (page 49), “Don’t bother with target-date funds.”  In your video titled, “2 Funds for Life: A Simple Strategy to Maximize Your Retirement Investments,” you included target-date funds on your list of “The Three Greatest Investment Products.” Why have you changed your views on target-date funds? :30

In this answer Paul references an important new study from the Wharton Pension Research Council, “Target Date Funds and Portfolio Choice in 401(k) Plans.”  (For more on target date funds see Paul’s website, Best Advice, Target Date Funds)

2. What are you opinions of lower cost target date funds at Fidelity and Schwab? 20:15

3. I am 43 years old and have about $90K in a CD that matures at the end of the month and want to know: how would best get it into the market with so much uncertainty with the economy/covid/social unrest? I know it’s bad to time the market but… 2:10

4. I am 35 and have several hundred-thousand in retirement accounts and a few hundred-thousand in a taxable account. Which equity asset classes should I have in each portfolio? 35:54

5. In you Best-in-Class ETF recommendations, you have DLS for international small-cap value. I notice 31% of the fund is invested in Japanese companies. That seems very risky.  Please explain, why did you chose this fund? 40:46

6. Do you still recommend small-cap value for your strategy that turns $3000 into $50 million?  43:30

7.  For someone in a high tax bracket do you recommend a short-term tax-exempt or corporate bond fund? 52:30

8.  You mentioned you and your wife hold a portfolio of both U.S. and international stock funds in the equity part of your portfolio.  I would like to stick with a U.S.-only portfolio.  How much difference should there be in the portfolio returns of the 4-fund combo and the 10-fund Ultimate Buy and Hold Portfolio?  56:35

Note:  This article includes the ETFs and mutual funds we recommend for the 4-fund combo.

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