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I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds.

I've done basic mutual fund research and picked about 5 different funds that match what would be considered an appropriate allocation for where I am now in my life, and how long till I retire. I plan to re-balance it as necessary down the road.

I'm wondering if it wouldn't be such a bad idea to "hedge" my allocations and mutual fund picks by buying some shares in a life cycle mutual fund(s). These are funds that are designed to be rebalanced by the fund manager as their target date for retirement approaches.

I figure this might be a good corrective strategy to compensate for under performance due to bad picks or slightly-off-percentage-allocations I might make in the long run. Does this seem like a bad idea?

------ EDIT / New Thoughts ------

I realized I wasn't taking advantage of my employer's 401(k) matching benefit, so I am going to open one of those up soon (as a Roth 401(k)). I'll designate the entire account to be in a target-date fund. I'll continue to manage my Roth IRA on my own, and let this be my "hedge" for my IRA as described above.

Still, does anybody else have any input or thoughts on this strategy?

I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds.

I've done basic mutual fund research and picked about 5 different funds that match what would be considered an appropriate allocation for where I am now in my life, and how long till I retire. I plan to re-balance it as necessary down the road.

I'm wondering if it wouldn't be such a bad idea to "hedge" my allocations and mutual fund picks by buying some shares in a life cycle mutual fund(s). These are funds that are designed to be rebalanced by the fund manager as their target date for retirement approaches.

I figure this might be a good corrective strategy to compensate for under performance due to bad picks or slightly-off-percentage-allocations I might make in the long run. Does this seem like a bad idea?

------ EDIT / New Thoughts - Jan 11, 2010 ------

I realized I wasn't taking advantage of my employer's 401(k) matching benefit, so I am going to open one of those up soon (as a Roth 401(k)). I'll designate the entire account to be in a target-date fund. I'll continue to manage my Roth IRA on my own, and let this be my "hedge" for my IRA as described above.

------ EDIT / New Thoughts - July 23, 2010 ------

My fund picks for my own Roth IRA has been consistently performing +1.5% relative to my target date 401(k) fund, over the last 6 months. That feels good =)

Still, does anybody else have any input or thoughts on this strategy?

I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds.

I've done basic mutual fund research and picked about 5 different funds that match what would be considered an appropriate allocation for where I am now in my life, and how long till I retire. I plan to re-balance it as necessary down the road.

I'm wondering if it wouldn't be such a bad idea to "hedge" my allocations and mutual fund picks by buying some shares in a life cycle mutual fund(s). These are funds that are designed to be rebalanced by the fund manager as their target date for retirement approaches.

I figure this might be a good corrective strategy to compensate for under performance due to bad picks or slightly-off-percentage-allocations I might make in the long run. Does this seem like a bad idea?

------ EDIT / New Thoughts ------

I realized I wasn't taking advantage of my employer's Roth 401(k) matching benefit, so I am going to open one of those up soon. I'll designate the entire account to be in a target-date fund. I'll continue to manage my Roth IRA on my own, and let this be my "hedge" for my IRA as described above.

Still, does anybody else have any input or thoughts on this strategy?

I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds.

I've done basic mutual fund research and picked about 5 different funds that match what would be considered an appropriate allocation for where I am now in my life, and how long till I retire. I plan to re-balance it as necessary down the road.

I'm wondering if it wouldn't be such a bad idea to "hedge" my allocations and mutual fund picks by buying some shares in a life cycle mutual fund(s). These are funds that are designed to be rebalanced by the fund manager as their target date for retirement approaches.

I figure this might be a good corrective strategy to compensate for under performance due to bad picks or slightly-off-percentage-allocations I might make in the long run. Does this seem like a bad idea?

------ EDIT / New Thoughts ------

I realized I wasn't taking advantage of my employer's 401(k) matching benefit, so I am going to open one of those up soon (as a Roth 401(k)). I'll designate the entire account to be in a target-date fund. I'll continue to manage my Roth IRA on my own, and let this be my "hedge" for my IRA as described above.

Still, does anybody else have any input or thoughts on this strategy?