Are Target Date Index Funds within an IRA a good option when the account is not getting consistent contributions

Investing
#1

I have recently rolled over 70k from my 401k to a traditional IRA. I will not be making contributions to this account as my contributions go to my 401k first up to employer matcg, then the rest in my Roth IRA. I’ve rolled over these funds to a Traditional IRA instead of Roth to avoid the I come tax hit. But being that this account will just have a one time deposit of 70k and no monthly contributions, is a Target Date Index Fund still a good option to invest the full amount in for the long term? 30+ years?

Thank you!

1 Like
#2

In my opinion, yes! It’s the perfect place to park your money. It will automatically rebalance and reallocate, basically optimal investing so it grows and is ready for you at retirement! That’s exactly what I would do. Here’s a deeper dive into the reasoning:

Nice job having $70K already in an IRA! In another 20 years, that should double 2-3 more times giving you $280K-$580K! :slight_smile:

3 Likes