Target Date Index Funds: Who wins?

Hey Jeremy, so we are all now on board and are going to invest 100% into TDIFs… great! Right?

We couldn’t let you off that easy…

While you could definitely say just pick any TDIF from your favorite broker (Vanguard, Fidelity, Schwab), each has their own glide path that actually significantly varies

https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/TargetDate

https://www.schwab.com/mutual-funds/mutual-fund-portfolio/target-funds

In your opinion, which broker offers the best target date index fund options if you consider the expense ratio, underlying funds, and glide path / asset allocation over time?

BONUS: Bonds are obviously meant more for fixed income and wealth preservation versus growth, but the trend for bonds is… concerning to say the least. Do you foresee bonds continuing to decline in value and importance in a diversified portfolio? obviously you wouldn’t want to be 100% stocks later in life but if bonds are a majority portion of your portfolio and they’re only returning ~3%, is this a sustainable option?

Thanks!

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Ha! Looking forward to Jeremy’s response!

I’ll cover this in tonight’s office hours (3/10/2021) with the recording available afterwards on the course site!

If you’re not signed up for office hours, you can sign up here.