Originally Posted by
Winston
Target Date funds are most assuredly NOT low cost. Those fees compound massively over the course of your life and lead to a massive opportunity cost. This is the primary argument against them.
The PRAP target date funds are about 40 Basis points (40/100 of 1%) because they are a mix of passive and active investing.
Industry average about 63 basis points.
Vanguard that RHA invested in about 9 basis points.
Schwab as two suites. Index funds for about 8 basis points and active management in the 40-60 range.
PRAP target date funds have performed well, both gross and net of fees.