Reply to Vanguard Target Date funds (in taxable accounts) --- WHAT IS GOING ON?

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Reply to "Vanguard Target Date funds (in taxable accounts) --- WHAT IS GOING ON?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Anyone find this kind of amusing?   The bogleheads and FIRE crowds are so smug about their investing in index funds.  I personally think diversity is so important.  Index funds are fine but there is always a risk.  [/quote]

This specific issue has been discussed on the Bogleheads forum. It has nothing to do with index funds and everything to do with an investor being educated enough to know what they buying and about asset location. TDF do not belong in taxable accounts for a variety of reasons, this being one of them. Even ETFs have capital gains distributions.[/quote]

Your response very much conflicts with the message I’ve seen shared over and over again by those who promote index funds.  The message has been something along the lines of “index funds allows you to be a passive investor.  You don’t need to research the funds.  Do the three index fund approach.  Put your money in the funds and sit back.”

It seems odd to me that now the promoters are saying you need to educate yourself about index funds and this happened because the investors are uneducated.  [/quote]

The target date funds are not regular index funds, to my understanding. Kind of a different animal. 
[/quote]

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