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!