Re: Need Basic Advice on Funds --> Am Still in C fund 100%
JkMill,
With 21 years to go till retirement - meaning that you are completely within the accumulation phase - I would not worry about when to move your assets. A couple of points here or there will not mean much unless you churn your account and consistently lose those points. A good nights sleep is worth 3% eh... Plus, with one missed trade in a booming or busting market you will miss that much in a day or a week.
Anyway, in my opinion, the L Funds are pretty good - but they seem a bit risk adverse by one level. In my opinion someone retiring in 2030 should probably use the L2040 rather than the L2030. There is simply too much cash in the 2030 for someone retiring in 21 years. Then again I like risk and I think I can bail out if the yummy meal I viewed from a mile off turns into a fetid mass of maggots as I approached.
As far as mixing L funds with their component parts I am not certain. Some around here could do it, but that approach is actually pretty dangerous. You would be unbalancing a scientific (hopefully) allocation with a hunch. And, do you have the tools to see how it affects risk and return. If you want to use the L funds as guidelines just get their allocation and then split it manually using the component funds. Then you could overweight a fund(s) and underweight others. You will then see what your actual allocation is rather than the computational mess of mixing L and component funds. My brain hurts just thinking of that
Lookin' up at the 'G Fund'!!!
Bookmarks