ieatcrayonz Posted June 29, 2008 Share Posted June 29, 2008 Anybody invest in lifecycle mutual funds? Curious to know if they are a good long term investment. Link to comment Share on other sites More sharing options...
HereComesTheReignAgain Posted June 29, 2008 Share Posted June 29, 2008 Anybody invest in lifecycle mutual funds? Curious to know if they are a good long term investment. They are great if you are a relative novice to investing or don't have enough money to diversify right away. You will most likely pay a little more in fund expenses, but for many people it is well worth it if your alternative is choosing 1 or 2 funds or guessing on the right allocation. A lot of our rollover IRA clients invest in target date or lifestyle funds, but we are dealing with mid to low balances and people who do not have a financial planner taking care of a big portfolio for them. I don't think I've ever responded to a serious Crayons post before...I'm still waiting for the punchline. Link to comment Share on other sites More sharing options...
Chef Jim Posted June 30, 2008 Share Posted June 30, 2008 Anybody invest in lifecycle mutual funds? Curious to know if they are a good long term investment. I'm more of an elliptical kind of guy. Lifecycles are bad on the knees. Link to comment Share on other sites More sharing options...
taterhill Posted June 30, 2008 Share Posted June 30, 2008 most funds will not allow you to invest 75 cents per month though Link to comment Share on other sites More sharing options...
John Adams Posted June 30, 2008 Share Posted June 30, 2008 They are great if you are a relative novice to investing or don't have enough money to diversify right away. You will most likely pay a little more in fund expenses, but for many people it is well worth it if your alternative is choosing 1 or 2 funds or guessing on the right allocation. They area a great tool for novices and non-novices alike because they force you to rebalance. Almost no one can do better than investing in the major indexes, AND you'll save a ton of money on fees from specialty funds or paying a broker. Link to comment Share on other sites More sharing options...
ieatcrayonz Posted June 30, 2008 Author Share Posted June 30, 2008 They area a great tool for novices and non-novices alike because they force you to rebalance. Almost no one can do better than investing in the major indexes, AND you'll save a ton of money on fees from specialty funds or paying a broker. http://www.investmentnews.com/apps/pbcs.dl.../INIssueAlert04 I know this is an article from '05 but it brings up an interesting point. Kerry O'Boyle, a mutual fund analyst with Morningstar Inc. in Chicago, said some Fidelity Freedom funds are heavily dominated by large-cap U.S. funds, with eight or nine in the category out of about 18 funds. Also, the series does not necessarily include the company's best-performing funds, either. "It just seems sometimes that the lineup is some of Fidelity's also-rans, as opposed to their more successful funds," said Mr. O'Boyle. Curious why they wouldn't be putting the money in their best performing funds. With these funds being so new, and there being no long term studies on it, is it really a great idea to put "all your eggs" into the same lifecycle fund. From the research i've done, it seems that all the major players use drastically different formulas in their lifecycle fund. Although i agree, the concept behind these funds are great. Link to comment Share on other sites More sharing options...
SD Jarhead Posted June 30, 2008 Share Posted June 30, 2008 They may not be for you Crayonz...I heard they invest most of their money in Canadian companies! Link to comment Share on other sites More sharing options...
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