SWYJX

Cruian

>I am considering changing it to 80% VTI and 20% VXUS A little light on the VXUS side for my taste, but more logical than your SWPPX + SWYJX pair. >Or should I just go 100% into SWYJX? This works. TDFs are designed to be "one and done," the only fund you hold. >Also, does the target retirement date really matter at this point if I am between 2055 and 2060? Only a little. At the top of each of these you can see the glide path they follow, scroll down and open up the "portfolio" dropdown section to see current ratios. * https://www.schwabassetmanagement.com/products/stir?product=swyjx * https://www.schwabassetmanagement.com/products/stir?product=swynx

xiongchiamiov

Sounds like you're on the right track. https://www.reddit.com/r/personalfinance/wiki/commontopics/ can help as a reference. But for now: 1. Open an IRA. Invest your chunk in SWYJX. Forget about it. 2. Set up your recurring investments to happen when money comes in from your paycheck and don't worry about trying to time purchases. You're investing long-term. If you're maxing your 401k already and have $1k/month additional to invest, you may start getting into a taxable account. IRA yearly limit is $7k, HSA is $4.3k if you don't have a family - that almost gets to $12k but also at least this year you've got some cash already in. I'm a big fan of target date funds (like I recommended above), but they aren't designed for taxable accounts. https://www.bogleheads.org/wiki/Three-fund_portfolio is how you would implement it yourself in a taxable account, very simply. If you want to optimize it all, [you can](https://www.bogleheads.org/wiki/Tax-efficient_fund_placement), but if you simply do a reasonable split between VTI and VXUS in your taxable account and TDFs everywhere else, that's perfectly OK, and simple and easy to maintain.

Cruian

>I'm currently investing everything into Schwab Target Date funds. I'm in SWYMX (2050), and my wife in SWYJX (2055). When I check the performance, it only shows a 5.8% rate of return, shown here compared to the S&Ps 11.54%. The S&P 500 is not a suitable comparison for all purposes. In a properly diversified portfolio, there will always be some parts over performing and others under performing. The thing is, which parts those are will change from time to time. It is better to always have part of your portfolio under performing than to sometimes have your entire portfolio under performing. The S&P 500 is not fully diversified, as it is essentially only US large caps. Your TDF has all of that plus US smaller caps, plus international, plus bonds, and being Schwab, I believe an extra REIT tilt. Recent history has favored US large caps but that isn't always the case, favor often flips to either the US extended market or outside the US. You're comparing a portfolio with multiple parts against only the single part that has done best in recent years. >Are the Target Date funds the wrong thing to be in? No, they're a decent investment residually for people that want to be hands off as well as those that don't know what they're doing. >and I feel like I'm losing a ton of money not averaging 10%. The 10% is a long term average. You're looking short term. Be aware that even the S&P 500 had a negative 10 year return between 2000 and the end of 2009 (there was a brief period of being positive in the between before the financial crisis), but has done great since.

lucky_ducker

I'm assuming you're at Schwab due to the SCHD and SPAXX. You do NOT want to invest in Fidelity or Vanguard mutual funds (this includes FSKAX) because Schwab will charge you a transaction fee up to $75 for every buy. Fido and VG do this to Schwab mutual funds, as well. The fee is deliberately punitive, to discourage account holders from buying competitor's mutual funds. Note that there are no transaction fees for buying a competitor's ETF e.g. Schwab account holders can buy VTI without a fee. The Schwab equivalent MF to FSKAX is SWTSX. You're invested WAY to conservatively for someone your age. I wouldn't "ease" out of bonds, I'd sell everything but the CDs and buy SWTSX. As the CDs mature, that money goes into SWTSX as well. If you don't want to be 100% in equities, consider the target index fund SWYJX.

another24tiger

Since you are 30 years out from retirement you can dump your funds in SWYJX (target date index 2055). Add it to regularly if you’d like. The fund will automatically rebalance its asset class allocation as you approach retirement age.

heatbeam

30, USA $172k salary Risk tolerant No debt Summary/Ask: I have an “extra” $7k-10k in my checking, and am seeking input on how to best invest that chunk plus layering on DCA afterwards so that this “extra” doesn’t keep coming back. I could certainly put this in MMF or high-yield savings, in which case it would be a house fund. My s/o already owns, and we are definitely long term together. We also have some family money coming in the not-too-distant future, so if I wasn’t putting away for house specifically, I’m ok with that. While on the topic, I have about $20k in my savings account which is intended to go towards ring. Her family will cover wedding costs so no need to save for that. The $20k for ring should probably be in a high-yield savings so any advice there is welcome as my current savings account is 1% APY. Also, depending on (or regardless of?) where I invest my “extra” 7-10k cushion (plus some DCA amount to prevent the “extra” from coming back), curious to hear thoughts on whether there’s a reasonable level of confidence behind dumping somewhere if timing is presenting an oppty, vs parsing out the $7k-$10k via shorter term DCA (1-2k at a time) and then reduce DCA longer-term once the “extra” cushion is invested. Again, pretty risk tolerant here. One thought is put the “extra” in VTI - 80% VXUS - 20% and DCA thereafter (or DCA the “extra” over time and then reduce DCA once cushion is gone). I say this, but I feel I already have similar investments. So this is definitely an area where I’m seeking advice. Current holdings: 401(K) VHGEX: 49% of 401(K), 27% of entire portfolio VTRIX: 26% of 401(K), 14% of entire portfolio DFGEX: 8% of 401(K), 4% of entire portfolio. 65 us / 45 exUS Company sponsored 2055 fund: 17% of 401(K), 10% of entire portfolio; within this fund: >Total Bond Market Fund: 5% of fund >HighYield & EmergMkts Bond Fund: 2% fund >Glob Real Estate Stock Index Fund: 10% fund >Balanced Exposure Fund: 12% of fund >Total Stock Mkt Index Fund: 43% of fund >Total Int’l Stock Mkt Index Fund: 28% of fund Brokerage / maxed IRAs (DCAing here) via mutual fund SWYJX: 26% of entire portfolio Company stock (tech) Available: $4,100, 3% of entire portfolio RSUs: $24,000, 16% of entire portfolio Total: $28,000, 19% of entire portfolio For what it’s worth I already have an HSA going as well. Many thanks and please let me know any feedback on my post here.

kjstan

>Though I would recommend getting out of target funds because they carry to many bonds for people on their 20s-40s This intrigues me. I am 34 and have a 401k through work while also maxing out a target date fund with Schwab (SWYJX). I am ok with taking on some more risk while things are down, but enjoy the "sit and forget" style of target date. What are some other options I could move this money into?

bioprog

I wan't to buy a target date fund for my roth ira this year. I'm with schwab and I'm considering SWYJX... just wondering if any sees a better alternative (target date is 2055)?.

YYqs0C6oFH

SWYJX is a target date fund which means its allocated between stocks and bonds and the proportions are automatically adjusted to become more conservative (more bonds, less stocks) as the target date gets nearer. With a 2055 target, I think its like 70-80% stocks currently, which is perfectly fine for most people. If you want to be more aggressive since you've got 20-30 years until retirement you can by adding some VT or other index funds to skew your holdings towards more stocks and make the conservative bond portion of the fund a smaller portion of your overall portfolio. But there isn't much difference between VT (which is a total world stock index fund) and the 70-80% of SWYJX which is put into very similar stock indexes, so if you're happy with that distribution and don't want to worry about managing it years down the road, just adding more SWYJX and letting the target date adjustments work over time is also fine.

College-Lumpy

When you look at the underlying holdings if SWYJX it looks an awful lot like what you'd have in VT (small amount of REIT exposure, almost no bonds which seems appropriate given the 2055 target date). VT won't hurt. It won't help much either. Might want to think about how actively involved in your investing you want to be. The target maturity fund is set and forget. Relatively low expenses. If you want to tune it with other holdings maybe consider building your own asset mix and adjusting it as you go along.

GCAT3

I don't recommend you to invest using CalSavers. Their fees are too high for what they're offering. I'd open a roth ira with charles schwab and invest in target date 2055 or SWYJX