No. of Recommendations: 0
I assume that the twenty years difference in your planned retirement dates is because of an age difference and not some special situation. If this is the case then you might want to reconsider when you and your spouse are planning to retire to try to not have that many years of one spouse working while the other is retired.

The targeted retirement funds are set up so that they can be your only retirement fund and they will automatically shift the fund allocation as your retirement date nears. If you are using these and have significant assets in other funds you will need to regularly rebalance your portfolio. If you are going to do this anyway it might be best to just have several funds that you annually rebalance yourself and skip the targeted retirement funds.

IMHO the balance funds are way too conservative and have way too much of the assets in bonds for people with a long time until retirement. Interest rates and inflation are both at near record lows. If there was ever a time to underweight bonds this is it. With a 2045 retirement date you should be have very few fixed income investments. If you want some diversification from stocks look into REITS. Do a search on this board for “targeted retirement fund” and you should find a lot of discussion on this.

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