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Target Date Retirement Funds from American Funds
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AAK732
05-12-2008, 8:31 AM | Post #2516991 |
7 Replies
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In my current situation, I am a client of a Brokerage firm. Thus the funds that I can buy are through my advisor and always have to be Load funds (A, B, or C). That being said, since I have to buy Load funds, I end up buying into additional shares (A shares of course) across various American Funds. Though I haven't seen much written on this forum...is the better option for me to just buy the Target Date Retirement funds - in both the Non-taxable and Taxable accounts. The reason I personally am asking this question (and there may be others on this forum in my situation)..is that I do not intend to use the money I am investing in these funds until both me and my wife retire (will complete 38 later this year). All the monies that I put into these funds - including the Taxable accounts - is intended for future use (retiring in 25 years at 60-62: Target Date 2030 is the one for me). My question is --> (1) Is it better to put the money into the Target Date 2030 fund....by which the monies are properly allocated across various fund (40% Gwth, 40% Gwth-Inc, 15% Equ-Inc, 5% BondFunds), OR (2) should I continue to allocate the money myself across various American funds (CapIncBldr, CapWrldGwthInc, AmerBalncd, and Amcap). Thanks. AAK.
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American FundsbrokerageloadTarget DateTaxable account
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Re: Target Date Retirement Funds from American Funds
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UncleFutz
05-12-2008, 1:10 PM | Post #2517092
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I'm curious about people's thoughts on AF's target lineup, particularly in light of M*'s comment on Target 2020: "This fund has its charms, but investors can do better." Thanks Fritz
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Re: Target Date Retirement Funds from American Funds
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hurleyhuckster
05-12-2008, 10:36 PM | Post #2517263
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Hi AAK, I have not looked very closely at AF Target Retirement Funds. However, I may have some other thoughts for you. But first, what does your advisor have to say and why? Brian
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fundsAdvisor
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Re: Target Date Retirement Funds from American Funds
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Gregory
05-13-2008, 3:59 AM | Post #2517286
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 AAK732:In my current situation, I am a client of a Brokerage firm. Thus the funds that I can buy are through my advisor and always have to be Load funds (A, B, or C). That being said, since I have to buy Load funds
You can break free, I hope. You don't have to pay loads.
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fundsloadAdvisorloadsbrokerage
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Re: Target Date Retirement Funds from American Funds
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UncleFutz
05-13-2008, 6:35 AM | Post #2517302
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In my case, the load is already paid - this would be a transfer. So, other than the fact that I wouldn't be able to play around with the allocations myself, does anyone see any downside to using the AF target funds? Fritz
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fundsload
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Re: Target Date Retirement Funds from American Funds
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biolex
05-13-2008, 10:17 PM | Post #2517617
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Have you asked your adviser? If he's being paid, he should be giving you top notch advice. If you do your own allocation or if you decide to use a target fund, you should invest in no-load funds instead of throwing your money away. Take the money out of your brokerage account and open an account directly with Vanguard, T. Rowe Price, TIAA-CREF, etc.
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Re: Target Date Retirement Funds from American Funds
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KCallie
05-15-2008, 11:25 PM | Post #2518369
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UncleFutz: In my case, the load is already paid - this would be a transfer. So, other than the fact that I wouldn't be able to play around with the allocations myself, does anyone see any downside to using the AF target funds? Fritz
I don't like some of the funds in them. And now is a bad time to buy bonds IMO. At your age, if you want to be in American Funds - take a look at AEPGX, NEWFX, ANCFX, AGTHX, CWGIX, CAIBX and SMCWX.
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CAIBXloadCWGIX
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Re: Target Date Retirement Funds from American Funds
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Biggix
05-17-2008, 5:22 PM | Post #2518981
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Fritz, I agree with Kcallie here...pick three or four funds, set your "sleep at night" quotient percentages and let it be. I would rebalance maybe every couple of years (to compensate for the long term approach of the investment philosophy of the counselor or if the "SAN" quotient gets terribly out of whack!). Apart from that, I can't really say there are any downsides given the short history of their existence. Wayne.
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