UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next
Author: TwoCybers Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: Lifecycle Funds Retirement Accounts Date: 1/18/2008 7:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You are asking about Market Timing - perhaps you have some magic knowledge or ability, but a whole lot of studies over a whole long time say market timing may win in the short term sometimes, but it looses the vast majority of times over a period of 10 or more years.

I would suggest there are other aspects of Lifesytle accounts you might want to look at. Take the LifeSytle accounts at T Rowe Price and Vanguard as an example. If you compare the 2020 and 2030 funds you will notice huge differences in allocation. Life a factor of two on the portion of equities between the firms. Many 65 year olds will live 95 years - so the idea of planing for a 10 or 15 year retirement is dangerous to your financial health.

You need stocks probably more then 50% to keep up for a 25 to 40 year retirement. So take a look at where your funds are and will be. What is the allocation for a 2010 or 2015 account? Assume that retirement will be more conservative - does that look reasonable for 25+ years? What I am saying is you may decide even though your retirement date is 2025 you would be better off with a 2030 or 2035 fund in some families.

As always watch fees. There is good reason a more aggressive (i.e. 2035) fund will require more work/costs than say a 2010/2015 fund.

Gordon
Atlanta
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement