Hello all,
Happy new year.
I am a relatively newbie, been here a little over a year when I started learning about investing. I really appreciate this community and philosophy.
I am curious why TDFs like FBRVX are not recommended more? Are they not lowkey the best investment vehicle for a beginner? It has an automatic glide path that does rebalancing for you, all you have to do is put money in and buy more. It’s a true set it and forget it, more so than VT + BND.
I can see two potential reasons why more don’t recommend it: 1) expense ratios, they tend to be higher for TDFs but I believe investor class have good enough ratios & is not that much more expensive than ETFs, 2) availability, I suppose for like 401k’s, you might not have a good low cost TDF available for purchase?
Are the two above assumptions correct? I’ve been really curious about this topic. Even on like tiktok, a lot of advice is stock picking or aggressive ETFs which I suppose makes sense but I still feels TDFs are great for beginners, no? Especially for a Roth IRA.
Genuinely just looking to learn more on this topic, thanks.
Edit: I was asking more broadly, even past just this sub.