As a college student earning my first taxable dollars from internships and a part time teaching assistant position, I’ve had the pleasent experience of seeing my bank account grow. This has really given me the opportunity to begin investing for my future and retirement. I’ve invested for fun ever since I could open a brokerage account. Over time though, my investing goals have become much more serious. As finance somehow seems entertaining to me, I’ve spent alot of time and effort delving into the multidude of options I have when it comes to investing my money. This article (written with super chill terms) will deliver my two cents on why I think most people should utilize target date retirement funds.
What are your general options for investing your money for retirement and why most suck
I believe for the average individual there are a few options:
- Do nothing
- Actively trade a portfolio
- Passively trade active mutual funds / etfs
- Passively trade index based mutual funds
- Passively trade target date index based funds
What exactly is a target date retirement fund
Target date retirement funds usually take the form of a mutual fund. You buy the fund just like you’d buy any other fund.
Fund suggestions based on your brokerage
Other ideas to maximize returns and minimize risk