But today this video is all about target-date funds, what they are and if I recommend them, and how do they compare to index funds and active mutual funds.

????M1 FINANCE $10????
Link: https://m1.finance/fQsrul1PZcHM

????1 on 1 Talk + My Budget + Stock Investments????
https://www.patreon.com/tommybryson

1. First thing to establish is definitions of all these terms
– I hated being school listing to a teacher talk about a topic that they have not defined yet
– So I’m just like “ are you gonna tell us what that is or just keep talking “

So here is the definition:
– Mutual Funds: you have two types Active and Index type. Active mutual funds investor pull in money and allow a manager to try his best to beat the market every year ( for this you get more taxes, higher fees and stats show they don’t beat the market )
– Index funds: track the market instead of trying to beat it, and get the average return each year with lower fees, and taxes.
– Target date funds: for people that want a fund that will be perfectible balanced for their age and for when they plan to retire. And they do all the work for you

2. Everything you Need to Know about Target Date Fund
– And we are going to break it down with the good and the bad

Good Part first:

Fully Automated:
– When investing there are three things you need to pay attention to
– Portfolio allocation for diversification, Rebalancing, and time ( how you change the way you invest as you get older)
– Which then make your only job investing by putting money in ( I recommend % of salary no less 10% at the same time every time you get paid)

Bad Part Second:

You don’t have that much control
– So if its 2020 around march and your portfolio just lost 20-40% as a lot did
– You’re not able to in and say sell this and keep this
– Because it’s for the long run, and I 100% agree with it

Fees can be High at around .10% – 2%
– Here why, target-date funds are usually just a fund with a mix of other mutual funds which also have fees
– So if the target date funds cost .5% plus the other funds within it also .5% you could be looking at 1-2% sometimes ( which could cost you 33% of your portfolio over a 20-30 year period
– But I called vanguard and they said this

How to Pick them: step by step with vanguard

3. Alternative
– Using the ETF version to build your own portfolio
* PRO TIP*
INFORMATION IS EVERYTHING

????Merch????
https://teespring.com/stores/tommybryson

✅2 FREE AUDIOBOOKS✅
https://amzn.to/2Enayo8¬¬¬

????ACORN FREE $5????
Link: https://acorns.com/invite/38EYSU

⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
Link: https://amzn.to/2VGbxt9

????????‍????DISCORD PRIVATE GROUP????????‍????
https://discord.gg/EcZEHpA

My Camera Gear: https://www.amazon.com/shop/tommybryson

✔ Help Us Reach 300,000 Subscribers: https://goo.gl/0wvm6w

????All My Social Media????
Link: https://linktr.ee/tommybryson

*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

source