Hi Jeremy,
I want to ask this, I do have 401K retirement date is 2060 …but When I bought the TDIF its 2065. Is it better if must match the date of retirement?
What would be the best thing to do? or should I just buy another TDIF 2060.
(My born year was 1997 btw)
Thanks~~
The 2065 fund will be a bit more aggressive as the proportion of bonds to stocks will increase later on towards the target date. However, they’re very similar. I would stick with 2065!
So I would recommend matching the year to the year that you actually want to retire so that the assets can be balanced appropriately for your age. At this moment, I would say there is minuscule difference between 2060 and 2065 funds. But as you approach your retirement age, if you intend for it to be in 2060, buy2060. So it all depends on what year do you want to stop working and just collect money from your 401k, aka retirement.
Hi Mindi, even though Jeremy is retired at 40, his TDIF is actually when he turns 70!
Jeremy is the 1%. He has millions to invest at a super young age. He can afford to be more risky than the normal folks like us. Lol I don’t recommend investing exactly the same as another person because everybody’s financial situation is different.
The reason why I pointed that out was to express an example that your target date and retirement date don’t have to be the same. In fact, Jeremy believes that the glide path should be based on your life span, not your working career. So that is why he chooses 70 even though he retired much earlier… not because he is being extremely risky. But even if a normal person who retires at 65 chose a target date of 70, it’s not that big of a deal, especially considering that reallocation is still gradually happening after the target date.
Vivi - I agree that the year you retire and the TDIF year dont need to be the same. My recommendation was a personal opinion for the question that was asked. The difference, like I mentioned in the first reply, is minuscule at this moment. But for those who can’t afford to be risky near retirement age, I recommended to switch as they get closer to their retirement age. Recommendations are to give an opinion to the specific situation, they’re certainly not hard facts. 
I plan to be work optional by 2035 but my TDIF is for 2055. I don’t plan on switching as that would involve selling and rebuying. If for some reason I wanted to have more bonds, I would buy a bond fund but I don’t anticipate that. Yes, personal finance is personal.