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Favorite Vanguard core fund?
Old 01-31-2015, 08:05 AM   #1
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Favorite Vanguard core fund?

In my Vanguard IRA I have a pretty good chunk in a MM fund. I plan to plunk into a long term Vanguard fund this year. Lots of good options. I don't plan to dip into anything for another 6 years to avoid the early withdraw penalty. Looking for a lower risk fund as I have the higher risk and no risk area covered. Have a small position in VWINX, could just add it to that one but wanted to get a few of your opinions/ recommendations 1st.
For me, the higher risk and zero risk is easy. Its the solid stuff in the middle that seems to kick my butt. 60/40? 40/60?
In the end, it might not really matter that much? Thoughts?
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Old 01-31-2015, 08:34 AM   #2
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I have Wellington as one of my core funds in my 401k and retired 2 months ago. I will roll over that 401k in March and will invest in Wellesley or stick with Wellington with a portion going into the new ultra short bond fund that Vanguard is coming out with soon. Both funds are balanced and have been around for a very long time.
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Old 01-31-2015, 09:42 AM   #3
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I have about 1/3 of my liquid NW in Wellesley which has performed remarkably well for a balanced fund for a long time. But as it is actively managed, who knows how long the pixie dust magic will continue? I've been ER'd for 12 years now and like the fairly steady income generation from that fund.

On the other hand, if one adheres to the total return investment approach and doesn't mind more frequent rebalancing a balanced fund may not be the best way to go.
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Old 01-31-2015, 11:19 AM   #4
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Thanks, I retired 1 1/2 yrs ago. Am 53 & this will be a long term hold.
Just to add a bit more detail.
The pixie dust magic does not bother me. Bonds on the other hand give me something to think about in a raising rate environment.
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Old 01-31-2015, 11:25 AM   #5
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I have about 1/3 of my liquid NW in Wellesley which has performed remarkably well for a balanced fund for a long time. But as it is actively managed, who knows how long the pixie dust magic will continue? I've been ER'd for 12 years now and like the fairly steady income generation from that fund.

On the other hand, if one adheres to the total return investment approach and doesn't mind more frequent rebalancing a balanced fund may not be the best way to go.
I have a fair amount in both Wellesley and Wellington. Aren't these balanced funds actually rebalanced daily so they maintain their stock/bond ratio?
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Old 01-31-2015, 11:30 AM   #6
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Originally Posted by golfnut View Post
I have a fair amount in both Wellesley and Wellington. Aren't these balanced funds actually rebalanced daily so they maintain their stock/bond ratio?
Not according to this:

What is the Rebalance Process for Wellesley/Wellington
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Old 02-01-2015, 11:17 AM   #7
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Originally Posted by almost there View Post
... I plan to plunk into a long term Vanguard fund this year. ... I don't plan to dip into anything for another 6 years to avoid the early withdraw penalty. Looking for a lower risk fund as I have the higher risk and no risk area covered....wanted to get a few of your opinions/ recommendations 1st.....Thoughts?
Hi Almost,
It's kind of hard to answer not knowing your desired allocation or what your risk tolerance is.
So, my only advice is diversify. Do you have Int'l stocks, REITs, Small Value,..these are typically added to a portfolio of core US stock and bond index funds.

For a little pixie dust, how about VGHAX, a health care sector fund!
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Old 02-01-2015, 12:52 PM   #8
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Recently got lots of Pixi dust with a ton of VGENX and some VGPMX.
(Long term hold in the Roth's)
For me, most 60/40 types of funds are low risk and will be in my taxable IRA. Have about 1/2 in no risk.
So most any low risk balanced type of fund will probably work out.
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Old 02-01-2015, 01:03 PM   #9
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Old 02-01-2015, 01:05 PM   #10
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Vanguard Total Stock Market Index Fund
Vanguard Wellington Fund (about 65-35 allocation)
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