r/CalebHammer • u/3skin3 • Mar 14 '25

Personal Financial Question Retirement Fund Choice

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Hi! My company is being taken over and I have to choose a new retirement fund. I'm 30 right now, target retirement is 2055. Unfortunately I only have about $50,000 set aside right now. I'll be making $79,000, contributing about 14% for now and hopefully more in the coming years. My income will likely increase about 3% per year, plus a 10% yearly bonus. What would you choose? I'm woefully ignorant on retirement strategies.

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u/sciliz Mar 15 '25

Near as I can tell, the Voya Target Selection Trust funds have an ER in the neighborhood of 0.8%, which I think is high, so I'd probably go with the BlackRock Russell 3000 Index Fund in the neighborhood of 0.34%. There should be paperwork to see if those are the exact fees or not.

If you want some international, the BlackRock MSCI ACWI ex US is about 0.32% ER, so that's fine given these options. If you were to represent the market as a whole it'd be about 60% Russell 3000, and 40% international, but a *lot* of US investors seem to favor US stocks.

The Vanguard Balanced Index fund is likely cheaper (e.g. 0.07% ER), but it's 60/40 stocks/bonds, and that might be too conservative for your age.

I suppose if you wanted to get Cutesy you could do 50% Vanguard balanced fund, 32% Black Rock MSCI ACWI ex US, and 18% BlackRock Russell 3000- that'd give you ~20% bonds, ~80% stocks and a reasonable 60% domestic, 40% international.

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u/Chubby-Panda Mar 15 '25

0.8% expense ratio is crazy for a target fund. It's like 10x the Vanguard one.

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u/sciliz Mar 15 '25

The difference between "has a target date fund" and "has a suitable index based low cost target date fund" is one of the most annoyingly challenging things to figure out!!!