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Best Vanguard Funds For The ER?
Old 08-11-2004, 03:38 PM   #1
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Best Vanguard Funds For The ER?

Calling All ERs..

I have read lots about investing on this forum. And Learn't a great deal. Vanguard funds are mentioned often, and appear to be popular. What would be the best funds to invest in, for a $1m portfolio currently not invested in funds at all. (In MM and CDs, soon to be FULLY invested in such funds. Income is needed from this stash.

$600k is Post Tax and $400K is Pre-Tax.

Please relate your recommendations to personal experience (I.e what YOU are actually invested in, or going to invest in, versus what you THINK one should invest in. Obviously with reference to Vanguard Fund classes, indexes bonds etc.) Please use Actual Vanduard Fund Names (or other family fund names) where possible.

Also one last question, What is the difference between "Yield" and "Return as of [date]"? Is Yield what is expected, and Return what is actual? Or, is it Yield + Return.

And example is: If you check Vanguards web site you will see the

Vanguard Target Retirement Income Fund (VTINX)

http://flagship3.vanguard.com/VGApp/...FundIntExt=INT

You will see a 3.45% Yield and a 1.67% Return to date. Does this mean it is expected to deliver less than the speculated yield for the year, or is it 3.45% + (1.67% + Whatever it is at 12/12/2004 %)?

All recommendations and explanations are appreciated. THanking you all in advance.

SWR.
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 03:45 PM   #2
 
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Re: Best Vanguard Funds For The ER?

Hello,

Rather than have us folks list our Vanguard Funds, you should read Bernsteins "the 4 pillars of Investing" and then you can sellect your own funds and understand why you are sellecting them.

Much better plan.

I have already listed my portfolio and you can probably find it by searching. I can't because I forgot what I posted it under
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 04:26 PM   #3
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Re: Best Vanguard Funds For The ER?

What ever you do, do it slowly. First decide on your
stock/bond/cash allocation. I recommend using
Vanguard's Short Term Corporate for most of your
cash allocation. You can make this investment as a
lump sum ..... no need to DCA. As for the stock/bond
allocation, you are on the right track with the Target
Retirement family. Pick the one that suits you best
and start Dollar Cost Averaging (DCA) into the fund
over a 3 year period. Don't let anyone talk you into
plunging all at once. You can't afford the risk of a market crash just after you plunge. Some will argue that plunging gives you a little better return but the risk is not worth it, IMHO.

Personally, I use Target Retirement 2025 for 1/3 of my stash and use the "Coffeehouse" allocation for the other 2/3.

As for the meaning of "yield" and "return", click on
the "distribution" field on the fund you choose. This will give you an actual record of distributions made over the last several quarters. You can also click on the highlighted symbol next to the yield figure to get a
definition. "Return" means "total return" expressed
as a % over the period in question. If "year to date"
it means the NAV at the Beginning of the year - current
NAV divided by the beginning NAV, assuming reinvestment of all distributions.

Cheers,

Charlie
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 04:30 PM   #4
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Re: Best Vanguard Funds For The ER?

Quote:
Also one last question, What is the difference between "Yield" and "Return as of *[date]"? Is Yield what is expected, and Return what is actual? Or, is it Yield + Return.
Yield is income (ie dividends). Return is income plus growth/decline in price.
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 04:57 PM   #5
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Re: Best Vanguard Funds For The ER?

Take the Vanguard Target Retirement fund you mentioned, if you can live on that 3.45%, buy it and have the yield autodeposted to your spending account. Don't read any books or other stuff on investment - in fact the fund series is designed by Vanguard to be a one fund solution. That's it - buy one fund and get on with ER.

ONE FUND IS ALL YOU NEED!

Unless like me, you are incurable (since 1966), and watch the market, read books and websites, putz with individual stocks and just can't help it.

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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 05:21 PM   #6
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Re: Best Vanguard Funds For The ER?

One fund? I have 18!


The great thing about having a wide variety of funds is that you never have a completely down day 8)
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 06:02 PM   #7
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Re: Best Vanguard Funds For The ER?

That was to shock - Shock
Taxable/tax def., U.S./Canadian - real life is more complicated.

But - not counting cash and my hobby stocks by one calc:

me plus the SO:

Taxable * Lifestrategy conservative
IRA(hers) Lifestrategy conservative

IRA(me) * Lifestrategy moderate and * ** * REIT INDEX

(REIT is 10% of total). Lifestrategy was the forerunner to the Target Retirement Series - you got to switch as you age unlike Target. I did all that mutli- asset, many funds, foreign, gold, real estate, timberland, read books, studied the markets, etc., the first thirty years (in hindsight - a big waste of time). I rank investments right up there with crack cocaine as an incurable habit - but at least - I won't go to jail, hopefully. I find it mildly irritating that it's that simple. *
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 06:52 PM   #8
 
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Re: Best Vanguard Funds For The ER?

Quote:
Take the Vanguard Target Retirement fund you mentioned, if you can live on that 3.45%, buy it and have the yield autodeposted to your spending account. Don't read any books or other stuff on investment - in fact the fund series is designed by Vanguard to be a one fund solution. That's it - buy one fund and get on with ER.

ONE FUND IS ALL YOU NEED!

Unless like me, you are incurable (since 1966), and watch the market, read books and websites, putz with individual stocks and just can't help it.
When and if Vanguard ever comes out with a Fund that is composed of around 10 asset classes with a percentage in each, I'll be one of the first to simplify my investments into this one fund.

Simple is good
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Re: Best Vanguard Funds For The ER?
Old 08-11-2004, 08:26 PM   #9
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Re: Best Vanguard Funds For The ER?

What I would like from Vanguard is a fund of funds
that follows the Bernstein or Coffeehouse allocation
for stocks. You could then add fixed income to meet
your risk tolerance and need. This would suit most
all slice and dice advocates yet be simple. You would
still have to have the discipline to adjust the stock/fixed
allocation, but the stock rebalancing would be done
for you by Vanguard's computers.

Yes, I vote for simple as well.

Cheers,

Charlie
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Re: Best Vanguard Funds For The ER?
Old 08-12-2004, 09:05 AM   #10
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Re: Best Vanguard Funds For The ER?

Quote:

When and if Vanguard ever comes out with a Fund that is composed of around 10 asset classes with a percentage in each, I'll be one of the first to simplify my investments into this one fund.

Simple is good
STAR fund?

Although its all actively managed. But it does have a good record. No frickin REIT or precious metals or commodities or any of that stuff.

Which makes you wonder...if this 'slice and dice' multiple asset class stuff is so popular, but you have to read five books to "get it", why hasnt someone come up with a cheap STAR or lifestrategy type fund with these compositions and made it easy?

Hello? Vanguard?

(yeah I already know the answer...most of the 'experts' think that the slicing and dicing loses its merits past a particular US stock/bond allocation and maybe a little foreign)
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