My retirement fund that I just started was worth $15k in December of 2021. Then, May of 2022, our area was hit really hard. My retirement plan went down to $7k. Today, it’s worth $11k. I lost $4k on my retirement plan. It’s invested in total market funds, some tech, some big cap companies, and healthcare. But every sector has been ravaged by the stock market changes.

  • moseschrute@lemmy.world
    link
    fedilink
    English
    arrow-up
    4
    ·
    12 days ago

    I like to go a step further and do a target-date retirement fund. I think Vanguard funds are based on index funds, but they will reduce how aggressively they invest as you approach your retirement date. And the fees are very low.

    • EatATaco@lemm.ee
      link
      fedilink
      English
      arrow-up
      7
      ·
      12 days ago

      If you’re really hands off these are a good choice. But if you are willing to rebalance a couple of times a year, it’s unnecessary to pay the extra fees associated with these funds.

      • moseschrute@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        ·
        12 days ago

        I do like the automatic set it and forget it. Especially with scheduling transfers into investment accounts. I could probably get into rebalancing short-term, but I think long-term I would get bored and forget.

        • EatATaco@lemm.ee
          link
          fedilink
          English
          arrow-up
          2
          ·
          12 days ago

          Yeah it’s not for everyone, but I just have an event on my calendar for every six months, and I just rebalance when it goes off. Only takes a short while, especially if you are using some tool that will tell you what your weights are.

          • moseschrute@lemmy.world
            link
            fedilink
            English
            arrow-up
            1
            ·
            12 days ago

            Any tools you recommend? Also, how sure are you that the cost savings actually make it worth the effort? My gross expense ratio is 0.08% (I think I’m looking at the right number?)

    • Poik@pawb.social
      link
      fedilink
      English
      arrow-up
      2
      arrow-down
      1
      ·
      12 days ago

      The close to retirement ones suffered that year. The 2030 target lost 25% in less than a year recently and hasn’t recovered. Ironically, the high risk ones have been less risky during COVID than the low risk ones.

      • moseschrute@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        12 days ago

        Interesting. I’m targeting 2065 retirement, so I’ve got a long time. But I guess that fund could suffer from the same issue? Or maybe I should assume the same fate based on past events.

        • Poik@pawb.social
          link
          fedilink
          English
          arrow-up
          2
          ·
          12 days ago

          Not sure. I’m guessing interest rate stuff will mess with anything with bond holdings, so that probably had stuff to do with it. Other than that… I don’t know if I can convey a big enough shrug in text form.