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You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth, and outrageous generosity. All right, let's get to Sean and Roanoke, Virginia.

What's going on, Sean?

Hey guys.

How can we help?

Yeah, I was just curious, I've got my 401k on hold currently while we're working pay off some debt and everything but while it's while my 401k is sitting there

I've got it sitting in a what is that a like a destination date or whatever my retirement day

Target date yeah so I've got it sitting fully in the target date how would that compare to how you guys typically say to

invest in the in the four different types of accounts?

So the difference with you know the Ramsey investing philosophy is mutual funds,

diversify those across four types of mutual funds, growth and income,

aggressive growth international.

So you can basically think of it like small cap, mid cap, large cap, international.

What the Target Date Fund does, and those are largely stocks and equities by the way, inside of those mutual funds.

The Target Date Fund, what that does is over time it moves from stocks and then shifts to where you have more of a bond mix as you get older.

So it might go from 100% stocks when you're 20, and by time you're 60, it might be 40% stocks and 60% bonds.

Okay that's pretty much how I understood how they did that.

I'm just curious you know what kind of a difference if I end up changing to the Ramsey type philosophy in investing the way you guys do compared to have the target date that I currently have it set up like what can I expect from from that obviously it's the market I mean I understand but the way that we're teaching we're trying to get you the best rate of return for your time period that's the idea the best rate of

return for the the right amount of risk I guess is the best way to say it right

George yeah and so in your case having it in a target date fund you really are dialing back

for what most people would consider the risk but you're also dialing back the

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