Target Retirement Fund 2050 for Trowe Price or Vanguard?

[goals^n^dreams]

Hi,

I am 32 years old. I have Roth IRA at Troweprice. I have TRFOX - Target Retirement 2050 - Roth IRA. Below is my fund information. Do you think this one is a good fund or not? I am thinking to close account at Troweprice and move this fund to Vanguard but I am not sure.

Would you please give me the advice?
Would you please tell me what funds should I invest in Roth IRA beside Target Retirement 2050?
Thank you so much for your help!



Current Value as of 11/05/2014

Market Value $11,156.82
Market Value Change ($) $19.08
Available Balance $11,156.82
Shares as of 11/05/2014
Number of Shares 953.574
Share Price $11.70
Share Price Change ($) $0.02


Activity Summary
Time Period: 04/02/2014 to 11/05/2014
Beginning Value $9,848.28
Additions $1,000.00
Deductions $0.00
Income $0.00
Market Fluctuation $308.54
Ending Value $11,156.82
Change in Value $1,308.54
Personal Rate of Return 2.99%

 

[Therivler1]

expense ratio is 0.76.

Vanguard target 2050 (VFIFX) is comparable and is 0.18.

You should consider getting VFIFX instead. TRowe may charge fees, but you can transfer the Roth to Vanguard and not pay any fees. Just call vanguard and they will walk you through the process.

You shouldn't invest in anything else - target funds (at vanguard) are the best option for vast majority of people. Slow and steady wins the race.

 

[PointsEarner615]

The Finance Buff had a good write up explaining Fidelity's Freedom Index Funds that have a .16% expense ratio:

http://thefinancebuff.com/fidelity-freedom-index-funds.html

You can't go wrong with either the VFIFX as pointed out or the Fidelity offering.

 

[Matt]

The actual fund isn't that important at this level. Vanguard is fine, as are many others. This sort of balance is an example of why I say it is more important to go earn more money than worry about the return on it. One good payrise (or some good sidebusiness...) can double the value of the Roth in a year, which is something active trading won't do.

Fees wise, you are are looking at $80 per year with your present fund and about 1/4 of that with Vanguard. Clearly one is better than the other, but again hardly game changing.

Everyone's position is different so tailored advice can't be given based on the information you have provided, but generally speaking slam these funds into the lowest cost option you can find, and get hustling to earn more. Personally, I wouldn't invest in a 2050 fund at your age, but I am not you.

 

[goals^n^dreams]

Thanks Therivler1, PointsEarner615
@Matt: what fund at Vanguard will you invest at my age? I am planning to have a 2050 fund and another fund at Vanguard. But I dont know what the second fund I should get?

 

[Matt]

Thanks Therivler1, PointsEarner615
@Matt: what fund at Vanguard will you invest at my age? I am planning to have a 2050 fund and another fund at Vanguard. But I dont know what the second fund I should get?

Actually, strike that. My advice is typically that people should look at drifting the date of the fund beyond the actual date of retirement, but in your case if you even went for the furthest away, 2060, the holdings are only marginally different, so it isn't worth worrying about.

In terms of your second fund, you don't really need one, but if you are chasing a bit more return then look at REITs - their biggest short term threat is interest rates, but they produce good returns due to their dividends.