Why you should not invest in target date funds

Today, let's talk about a common feature in 401k plans: Target Date Funds. These are fine if you don't want to touch your 401k for decades, but you can do better with just a bit of attention.

What to Do?

Sell Target Date Funds: They often have high expense ratios, from 0.4% to 0.9%.

Buy Specific Funds: Choose the more cost-efficient options I mentioned in the previous episode.

For Large-Cap

VO or SPY or QQQ or VUG

For Mid-Cap

SCHM or VO

For Small-Cap

VB or SCHA

These selected funds have lower expense ratios, often around 0.01% to 0.3%, which means more of your money goes toward your future, not fees. Want specific recommendations tailored for you? Use Xillion to get personalized advice right at your fingertips.