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Does this make sense?
Old 07-06-2008, 06:26 PM   #1
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Does this make sense?

I am 48, wife is 50, plan to retire in 10-12 years. AA is approx 40% bond, 33% us equities (vanguard total stock index fund and 33% international (vanguard total international index fund).

With the markets performance, wondering if I should put it in the VG prime money market paying about 5.0% or do I stay put and ride it out?
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Old 07-06-2008, 06:32 PM   #2
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Unfortunately, VG prime money market fund hasn't paid 5% in months. It's paying right around 2.2% right now... So I'd stay put at this point and ride it out. VG total stock market index fund is paying right around 2% dividend right now, almost as much as VMMXX.
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Old 07-06-2008, 06:34 PM   #3
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Quote:
Originally Posted by tsturbo View Post
I am 48, wife is 50, plan to retire in 10-12 years. AA is approx 40% bond, 33% us equities (vanguard total stock index fund and 33% international (vanguard total international index fund).

With the markets performance, wondering if I should put it in the VG prime money market paying about 5.0% or do I stay put and ride it out?
If it was me, I would stay put and ride it out. In fact, that is what I did with about the same asset allocation during the market dip back in 2000-2002, when I was 7-9 years away from retirement. When the market picked up in 2003, it picked up with a bang and I did pretty well.

If you are still concerned, you could always direct the dividends and any new investments towards VMMXX (Vanguard Prime MM). But if it was me, I'd just keep on doing what you are doing.

On the other hand, I have no crystal ball!! Predictions of what the market might do are pretty much anybody's guess.

P.S. - - VMMXX is only paying a little over 2% right now, not 5%.
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Old 07-07-2008, 10:39 PM   #4
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Quote:
Originally Posted by tsturbo View Post
I am 48, wife is 50, plan to retire in 10-12 years. AA is approx 40% bond, 33% us equities (vanguard total stock index fund and 33% international (vanguard total international index fund).

With the markets performance, wondering if I should put it in the VG prime money market paying about 5.0% or do I stay put and ride it out?
Realized I typed 33% equities & 33% international, meant 30% & 30%.

Also - In my Roth IRA - I have it invested in the VG Wellington fund, any comments on this fund which has been around since I believe 1929.
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