Target date fund for 1985 birth year?

What target date fund should someone born in 1985 invest in? Fidelity preferred. Also, if I have funds in fiofx and want to switch it to something else should I do that or should I just invest future contributions in the fund I want? Hope that makes sense

Hi @Jasmine_Nakasone!

I think “birth year plus 65” is a pretty good rule to pick your target date index fund. For 1985, that would be 2050. FIPFX is the Fidelity version. FIOFX is 2045. They happen to be identical right now, but FIOFX will start slowly shifting towards bonds 5 years sooner. Not a big deal, but if you want to switch you could sell what you have and buy FIPFX or you could make future contributions to FIPFX. If it’s inside of at tax advantaged account, I’d probably make the trade to keep things simple. If it’s in a taxable account, I might consider any tax implications of capital gains before I sell.

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@Jeremy ok thanks! So it’s in a Roth IRA. I’ll make the trade tomorrow. One more thing, could I have different investments in a Roth like target date funds and then the S&P 500? Or would you stick solely to target date funds

Hey Jeremey,

I had a similar question. my 401k is invested in the Vanguard Target Retire Trust Plus 2050 fund with Empower. With a birth year of 1984. After reading the article and other post, would I change my investments to 2060 if I wanted it to be more aggressive? Also is this something we can simply do ourselves online or do we have to call in?

Hey @Tina!

Yes, you could certainly switch to 2060 to stay more aggressive. Note that those two funds are currently identical. Just the 2050 fund will start slowly shifting to bonds sooner. So the 2060 fund isn’t CURRENTLY more aggressive, it just will stay in it’s “most aggressive” state for longer.

And yeah, you should be able to login and just swap one for the other if you want to do that!

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Copy. Something to think about and I guess I dont have to make that decision now. Thank you as always

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