Target Date Funds VS Index Funds (Best Choice Will Surprise You!)

If you are wondering if you should be investing in target-date funds or if you should stick with regular index funds, then you have found the right video. We will discuss the pros and cons of investing in either target-date funds or index funds and which scenarios would be better for each of them.

#TargetDateFund #IndexFund #Investments
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Timestamps:
0:00 Introduction
0:37 Index Funds Defined
1:19 Target Date Funds Defined
3:10 Target Date Fund Benefits
3:46 Index Fund Pros
5:12 Target Date Fund Pros
6:56 Which Is A Better Investment?
8:14 When To Invest In A Target Date Fund
9:17 When To Invest In Index Funds
10:10 TAKE ACTION

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This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Before making financial and legal decisions, consult financial and legal professionals licensed in your jurisdiction. Some links provided may be part of an affiliate advertising program designed to provide a means of compensation for referring traffic and business to other companies.

[ELIFI]

I had lots of target date funds in my 401K before I "retired early", but rolled them over into an IRA that I manage and have them in index funds.

[dmoon]

Do you characterize target date funds as passive management or active management?

[dmoon]

Congrats on puncturing the 1k subscriber threshold!

[ero]

Just found your channel. I follow a lot of other financial you tubers, but enjoy your straight forward education approach and just subscribed.

[peacefulyou]

What would you say would be the best investment strategy to become a millionaire in 20 or 30 years with a target date fund? I have the 2055 Vanguard Target Date Fund. Also, How would I constantly invest in the Vanguard S&P 500 Index Fund consistently? Is it possible to automatically invest in this index fund every month or do I have to go in and purchase shares manually everytime I want to invest in it?

[dmoon]

Good lay down on the pros, cons. Taking your conclusion (it wasn’t surprising) even further, I think there is something really positive to be said for making a broad based small handful of index funds the lion’s share of almost anyone’s long term savings/investment plan.