Vanguard 2070 for someone born in '96?

Investing
#1

Hi there, love Jeremy & PFC’s content! Props to you guys.

I was in the process of setting up automatic investments with one of Vanguard’s Target Date Index Funds for my taxable brokerage account.

I’m '96 born, but I wanted to be slightly more aggressive than the default Vanguard TDF glide path, so I was thinking of going with Vanguard 2070 (instead of 2060/65). That way I get 5 extra years of 90/10 before it starts gliding down, and I get to stay around 60/40 between age 65-75 (instead of 50/50 with 2065).

Since this is a taxable account, I wanted to be sure: Is this an acceptable/normal choice? 2070 will be 65/35 at age 65 vs 60/40 for 2065. Is that disproportionately more risky? Or am I overthinking?

Would love to hear what Jeremy thinks as well, thank you so much!

#2

Because TDFs are not tax efficient, I would probably not hold this fund in a taxable.

The amount of % of allocation to bonds for you age might have different opinions, same to % of international.

His advice would most likely be:

Assuming you already are:

-Doing enough of a 401(k)/403(b) % to get the match (or Roth equivalent)
-Enough emergency funds in a high yield savings account
-Maxing out a Roth IRA (can do the TDF in there)
-Coming back into workplace retirement plan

There is a particular, loosely defined financial order of operations to follow before opening a brokerage account.

Once those are done, then I would use Vanguard ETFs to create your portfolios between: VTI, VXUS and BND

I think you are too young to hold bonds at this point, so 75% VTI and 25% VXUS would be a good starting point. Vanguard suggests up to 40% for international.

Hope this helps.