OK, the oatmeal post was surprisingly popular. I didn’t think anyone would get past the first paragraph 🙂
I have a decision to make that’s a little more consequential than breakfast, though. My university is changing retirement plan administrators, and in the next month I have the opportunity to either do nothing (in which case, all my normal retirement contributions will keep going to a Vanguard lifecycle fund, which is a fund of funds that includes U.S. stocks, international stocks, and 10% domestic and international bonds) or do something (in which case, I’d likely pick out an index fund, probably one that mirrors the S&P 500 or the NASDAQ.) I’m far enough from retirement that I don’t know that I really care about having *any* bonds in my portfolio — I don’t really need the stability right now, I think?
When I first opened my IRA, I basically had no choice — I only had $2000, so the only thing I could do was invest in a lifecycle fund, which had a $1000 minimum as opposed to the $3000 minimums for other stuff.
I know, recency bias, but I keep looking at this mint chart, which shows how my lifecycle funds are doing relative to the NASDAQ (hint: not great):
Under no circumstances am I going to start trying to pick individual stocks, or move investments around on a regular basis — I definitely want to set it and forget it. The question is what kind of index fund do I set it and forget it in? And since the university is making me make a decision right now, I feel like I should try to get some advice and make one. What would you do?