Co-Authored and Reviewed by Gagan Sandhu, MBA - The University of Chicago Booth School of Business, CEO of Xillion
Posted on . 1 min read
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.
