Quote:
Originally Posted by Wallymo
I'm 53, and had all my retirement in Schwab's "retirement 2035" account. My son is a business major and went over the individual investments that make up the retirement 2025 account. Turns out that 18% of my retirement investment was in bonds.
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I find some of the Target Date funds too conservative due to what Rainman mentioned. Most people are going to live way past retirement date if they're 55+ and relatively healthy.
2 things with your plan:
1. You're swtiching from a portfolio of All World stocks to only the US stock market. The US stock market has done very well the last 15 years. It's less diversification though so just fyi.
2. If you were 43 this plan would make a lot more sense than 53. As Rainman points out, you start to run into Sequence of Risk Returns where if you're concentranted in any one thing, particularly US stocks, there could be a long downturn right as you need to retire. You didn't really mention when you switch back out of 100% VINIX or what the plan was.. The Target Date fund kind of handles that for you.