Should I consider investing in Target Date Funds with later target dates?

I look at my retirement accounts every couple days even though I do not plan to touch them for several years. I have my current employer's 401(k) Plan that I receive a match on, a Roth IRA and a Traditional IRA. My Traditional IRA has holdings in a 2050 Target Date Fund. With people both living and working longer, should I look into investing in a Target Date Fund for 2055 or later? What are the benefits and possible risks involved with these funds?

Investing, Asset Allocation, Retirement Plans
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August 2017
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Target Date funds allocate their investment based on your estimated retirement age. The funds with target date further in the future will have a substantially higher allocation in stocks as they expect you to tolerate more risk. As the fund approaches the target date, it will start gradually decreasing its allocation to stocks and increase its allocation to bonds. Therefore reducing the risk of the investment. 

That said, I strongly recommend that you check the current allocation of the 2050 and 2055 fund before you make any decision. My guess is that they would be very similar if not identical. The difference will probably become more apparent further in the future. You could compare the 2020 and 2025 funds from the same family, 

The main risk with target date funds is that they assume your risk tolerance based on your age. It's a fair assumption, however, your individual circumstances could be completely different. 

August 2017
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August 2017