I currently have my Roth in LifeStrategy Growth Fund, and want to move it to a Target Date index fund (via Vanguard). Would you recommend moving over all at once or making a regular monthly transfer, or is there anything to watch out for there (fees etc.)?
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Hey @jenna365yoga!
First, I actually love the LifeStrategy growth fund. It has almost all the exact same benefits as a target date index fund. So if you stick with it, it would still be a great option. Note the main difference is the LifeStrategy growth fund sticks to an 80% stocks/20% bonds asset allocation. Whereas a target date index fund automatically reallocates based on years until the retirement date. (i.e. it starts off more aggressive at 90/10 and ends up more conservative around 50/50 at retirement)
If you do want to switch, that is fine! Nothing you need to worry about. There should be no transaction fees and no taxes. Since they’re so similar, I’d keep it simple and do it all at once. There’s an option in Vanguard to swap out a mutual fund, so you don’t even have to sell, then use the cash to buy. You should be able to do it in one step.
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Awesome, this is very helpful! Thanks Jeremy!
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