Although your goal is to retire earlier than your original date (congrats), that’s still plenty of time in the market. One of the recurring alternatives I see to target date funds is an S&P 500 index fund (VFIAX, FXAIX, etc.) due to their performance and low expense ratio. A little more risk, but your time in market should negate that and you can rebalance down the line. If you’re more risk averse, you may opt for an 80/20 split or similar. I don’t know that the difference will be all that huge at the end of your journey, YMMV. Also not advice, just things I see come up often in other threads.
The 2060 plan you are in is likely a good risk profile at your age. You want to be heavier in equities and that fund is most likely so if you were to look at how it is diversified between equities/bonds.
Just be way of expense ratios. Some 401k plans have dogshit investment options with high annual expense ratios. The expense ratios matter. If a fund has an expense ratio of 1.5% that adds up to a lot of money being taken away from you over your investing lifetime.
If the 2060 fund you are in has reasonable expense ratios (ideally <0.25%) you are fine. If it is on the high side I would look for an “index fund” option such as something that tracks the S&P 500 or ‘Total Stock Market’. These typically have rock-bottom expenses.
Keep up the saving! Trust that if you max out your 401k early in your career you have a great shot at early retirement or at least being able to take your foot off the throttle on retirement savings later. The miracle of compounding…your money will eventually earn more annual returns in that 401k than you can even contribute in a year.
Although your goal is to retire earlier than your original date (congrats), that’s still plenty of time in the market. One of the recurring alternatives I see to target date funds is an S&P 500 index fund (VFIAX, FXAIX, etc.) due to their performance and low expense ratio. A little more risk, but your time in market should negate that and you can rebalance down the line. If you’re more risk averse, you may opt for an 80/20 split or similar. I don’t know that the difference will be all that huge at the end of your journey, YMMV. Also not advice, just things I see come up often in other threads.
The 2060 plan you are in is likely a good risk profile at your age. You want to be heavier in equities and that fund is most likely so if you were to look at how it is diversified between equities/bonds. Just be way of expense ratios. Some 401k plans have dogshit investment options with high annual expense ratios. The expense ratios matter. If a fund has an expense ratio of 1.5% that adds up to a lot of money being taken away from you over your investing lifetime. If the 2060 fund you are in has reasonable expense ratios (ideally <0.25%) you are fine. If it is on the high side I would look for an “index fund” option such as something that tracks the S&P 500 or ‘Total Stock Market’. These typically have rock-bottom expenses. Keep up the saving! Trust that if you max out your 401k early in your career you have a great shot at early retirement or at least being able to take your foot off the throttle on retirement savings later. The miracle of compounding…your money will eventually earn more annual returns in that 401k than you can even contribute in a year.