That was the question I set out to answer.
And here is one answer I found at mymoneyblog:
It could cost you $250,000 or about 12.8% in just 10 years to just hang (HODL = 😲) on to a Target Date Fund. Surprised? I wasn't! Convenience comes at a price!
But one size does not fit all. So there may be circumstances when a target date fund might be right, especially if you are unable to rebalance your index funds from time to time. And all target date funds are not the same either. So here is some more information from moneyunder30:
Index Funds v/s Target Date Funds
The Vanguard Target Retirement Funds with an average cost of 0.17% and the Fidelity Freedom Index Funds which are different from the Fidelity Freedom Funds win our seal of approval.
The information provided here is my take on finding the best investment options for me and for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.
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