Should I move my current bond and other investments to a TDIF?

Hi Jeremy,

I have been investing in my 401K since 2014. I’m 37 years old and initially I had a TDIF but 2 years ago made changes after talking with a financial planner friend. When I look at my current investments I have about 40% in WF Stable Value bonds. Although I’m a bit on the conservative side I am pretty sure this is too conservative for my age. I have 55% in VFIAX and the remaining 5% split evenly between VIMAX, VTIAX and FOCSX.

Based upon what I’m learning from you I think I should change my future investments to a TDIF. Should I also take what I currently have invested in bonds (or everything?) and move it to the TDIF? In my Fidelity profile I believe this is referred to as rebalancing.

If I move this money inside my 401K will there be any taxes/fees?

Additionally, my 401K plan only offers Blackrock TDIFs so my option would be LIPKX targeted for 2050 (or there are 5 year intervals). Do you think these Blackrock TDIFs are a good choice?

I hope this all makes sense but I’m new to this and don’t want to make a mistake with a large sum of money!!

Thanks so much! :slightly_smiling_face:

I’ll cover this in tonight’s office hours (10/21/2020) with the recording available afterwards on the course site!

Thanks so much for answering my questions live on office hours! I had to leave early but I watched the recording. I truly appreciate what you do and the course and the office hours are excellent.

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