Vanguard or T. Rowe Price?

Question

Which one has the better target retirement funds? I'm seeking to invest for 2045 or higher. I'm aware that vanguard has lower exposure to stocks then t. rowe price but i can also bump higher target later on to get the 90 percent stock exposure.

Answer 1

they're both good. you probably won't be disappointed with either, but T Rowe Price has more Target Fund offerings than Vanguard.

Answer 2

It is about 6 of one and half a dozen of the other. Vanguard, T. Rowe Price and Fidelity each have such funds and perhaps other fund companies. No one knows what the future may hold and past performance is not a predicter of future performance.

Why not consider compiling your own portfolio of funds to provide you the target you desire. I know it means more work, but you might find it more interesting to do so. You can even use index ETF which generally have smaller expenses, but that will be somewhat offset by brokerage commiissions. If you want 90% stock exposure, then you can have it. Also you can generate more foreign exposure than many target funds are likely to provide.

2045 is 38 years in the future. Heck I would be full equities exposure until 2035 at which time I would cut equities to about 50% exposure and 35% in t-bills and 15% in foreign government debt assuming the financial position of the U S government has not improved by then. And given the current financial position, I would be 50% invested in foreign indexes and 50% invested in U S equities.

The big advantage of index funds besides the low expense ratio is the tax advantage of the index funds since they to not have as much realized capital gains as managed funds. Of course if the funds are in a tax advantaged account taxes have no meaning.

Answer 3

Given your choice of funds, go with Vanguard because of their lower fees that will tend to bode well for your long-term time frame.

Answer 4

Fidelity has many more funds andI believea better overall record for returns.

Answer 5

ameritrade or datek