Target Date Truth

Talking Real Money - Investing Talk

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16d ago 27:49

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Tom takes a break from vacationing to join Don in a deep dive on target date funds—the good, the mediocre, and the fee-loaded ugly. They break down performance data, highlight major fund differences, and remind listeners why understanding your own risk tolerance still matters. Listener questions spark advice on Roth IRAs for young investors and strategies for holding large tax payments. All with classic banter, bad jokes, and a quick jab at the Raiders.

0:04 Tom’s back (briefly), and the banter’s already off the rails
1:42 Target date funds: the set-it-and-forget-it investing strategy
3:06 $4 trillion invested—do they actually work?
4:29 Performance since 2010: solid but not spectacular
4:52 Fees dropping, but some funds still gouge
6:06 Comparing returns: Vanguard, Hancock, American Funds, Voya
7:39 Hidden loads and fees—legal, but not ethical
7:59 Target date trouble: they don’t know you
9:03 Asset allocation assumptions can misfit your real risk
9:44 Most funds overweight large U.S. companies
11:14 What Vanguard 2025 actually holds (spoiler: little value)
12:43 Better than nothing—but not better than customized
13:38 Final take: decent for novices, but beware high fees and mismatched risk
16:15 Listener Q1: Roth IRAs in only VFIAX—good idea for young investors?
17:36 Why global small-cap value ETFs are a better long-term choice
19:04 Comparing AVGE, DFAW, and VT—size and cost matter
19:36 Listener Q2: Where to hold tax money without exceeding FDIC limits
21:30 FDIC realities and alternative safe options like government money markets
22:23 Tax math: fed + Illinois = close to 50% if income, less if capital gains
23:52 Hidden state tax traps and EV drivers dodging gas taxes
24:13 Pre-DOGE Teslas and pre-Elon excuses

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