In need of suggestions and help
Hello, Thanks in advance for your help and input.
Newbie in investing here. After doing research for a while and being afraid to jump in, I have decided to go with either the life strategy or the target date for their simplicity and also would be a good starters for me to get a little more comfortable with the amount of information and maybe make changes down the road. Here is a little information about me:
my income about 73000 a year
spouse income about 25000 a year
planning to retire between 60-65
Risk taking capability medium to low
I am a little confused as to which of the following paths I should take or even if either of them make any sense (in regards to out IRAs), your suggestions are appreciated especially if you include the reasoning behind them since I am fairly new to this.
path one: Shoot for an overall portfolio of 65/35 by using the 2025 target date profile and applying that to both my own and the wife's account. (Assuming we are each allowed to contribute 5,500 by April of 2018).
path two: doing 5500 on my account with the 60/40 LS and 5500 on her account with the 80/20 LS averaging at 70/30 in total, 70 percent in stock seems a little to risky for my taste but don't really know any easy way to both take advantage of the 5500 limit and also achieve a 65/35.
my understanding is that with the target date setup since I dont really plan on retiring by 2025 the investment will grow very conservative very fast for us therefor I prefer the second path but I am not sure if that makes sense since I probably need to even adjust the second path very soon since the 30percent in bonds wont make much sense in a year or two (considering I am a little bit on the conservative side that risk taker).
What do you guys think,