Target Date Funds vs. Custom Investment Allocation: A Deep Dive

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Target Date Funds vs. Custom Investment Allocation: A Deep Dive

In this episode of The Retire Early Retire Now podcast, hosted by Hunter Kelly, a certified financial planner and owner of Palm Valley Wealth Management, listeners are given an in-depth comparison between target date funds and custom investment allocations. After a two-week hiatus due to a busy review season, Kelly discusses the convenience and benefits of target date funds, such as ease of use, automatic rebalancing, and broad diversification. However, he also highlights the limitations for high-income earners, including lack of personalization and tax inefficiency. The episode then explores the advantages of a custom allocation, focusing on personalized asset mixes, cost and tax efficiency, and a deeper understanding of one's financial portfolio. Kelly provides practical advice based on the listener's stage in their investing career and emphasizes the importance of a holistic view of all investment accounts. The episode wraps up with tips for those considering professional financial advice and a call to action to engage with the podcast for further insights.

00:00 Introduction and Welcome

00:43 Topic Overview: Target Date Funds vs. Custom Investment Allocation

02:34 Understanding Target Date Funds

06:48 Pros of Target Date Funds

12:52 Cons of Target Date Funds

18:33 Exploring Custom Investment Allocation

21:57 Pros and Cons of Custom Allocation

28:45 Recap and Final Thoughts

33:15 Conclusion and Call to Action

Check out the Palm Valley Wealth Management Website
PalmValleywm.com

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