RFHTX

ServerTechie

I use a target fund for my work 401K, I don’t love it but it gets the job done. RFHTX. Given the choice I’d rather manage the 401K myself but my plan is limited. My problem with target funds is they give you bonds at too young an age, they have massive overlap because they often incorporate others funds inside of it, and the ER is often high.

taplar

The 1 year return of [https://www.capitalgroup.com/individual/investments/fund/rfhtx](https://www.capitalgroup.com/individual/investments/fund/rfhtx) is 9.77%, which is fairly comparable to [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#performance-fees](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#performance-fees) with it's 9.35% 1 year return. If you rolled your old 401k into a traditional IRA you may be able to keep your RFHTX holding. If not, I'm sure there are other target date funds out there that are available with similar returns.

harrison_wintergreen

> with 75% into RFHTX and 25% into the 500 Index Fund. I am not looking to change that allocation unless folks have a compelling recommendation. that allocation has you more concentrated in large US companies. you're increasing your risk. RFHTX is already 68% US stocks, then you're adding more of the same with the S&P 500. https://www.capitalgroup.com/individual/investments/fund/rfhtx#com-mod-holdings-section > As we are moving into Schwab, what index funds or ETFs would make the most sense for the Roth IRAs? Schwab has good options, but you can buy most US ETFs through most US brokerages. you could buy Vanguard, Fidelity, etc, within the Schwab account. but SCHB would give you coverage of most of the US market, SCHF for international large companies and SCHC for smaller international, plus perhaps a bond ETF. full list of Schwab ETFs here: https://www.schwab.com/etfs/invest-in-etfs or you could break it down with SCHK for large/mid US and SCHA if you wanted a heavier small-company stock allocation. >Should we be maxing out Traditional IRAs with the intent to do a backdoor conversion later? probably but check with a tax professional. >What should be done with the cash that we have in our bank’s low-interest savings account? I'd pay down the mortgage. because you would never take out a HELOC at 2.4% and put the cash in a low-interest savings account. and the people who say 'invest the cash because you can beat 2.4% in the market' are using hypothetical market returns. you are not guaranteed to get a return in the stock market. the US market was flat from about 1968-1982.