Target Retirement Funds Face-Off: Vanguard vs Fidelity vs T Rowe Price
Back in March, I wrote a post detailing the three best mutual fund companies. I consider them the best all-around fund companies because of their low costs relative to the rest of the industry, easy access for the average small investor, and their investor-friendly culture. That is, they tend to put the interests of the average Joe investor high on their priority list, unlike some companies. These three titans also have something else in common: they all offer one-stop Target Retirement Funds.
Put It On Auto Pilot
A target retirement fund, or life-cycle fund, is simply a fund managed with a specific retirement date in mind. They typically come in 5 year increments i.e. 2030, 2035, etc and you simply pick the fund that corresponds to the year you plan to retire. That’s it. As time goes on, the fund’s manager will gradually shift the portfolio into more conservative investments appropriate for an investor your age. You literally have to do nothing else, and that’s why I think target retirement funds are one of the best inventions for small investors since the discount brokerage.
Over the first part of next week, I will compare and contrast target retirement funds from the only three mutual fund companies you need even consider: Vanguard, Fidelity, and T Rowe Price. Comparisons will be made on the basis of:
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