Free Vanguard Plan - Opinions?
I'm 58 retired, married and setting up my long term asset allocation. I'm rolling my lump sum and 401K funds to Vanguard and took them up on a free Financial Plan. Had the phone meeting yesterday and thought I would do, like so many others, and ask for a free assessment of their plan from the experts here.
Vanguard says I should be 50/50 stock and bonds, I was leaning to 60/40 and they said that was still in bounds of what they could support, and obviously I can do whatever I want.
They recommended moving all my pretax money to a few VG funds and blended in my taxable accounts to match the allocation, since they did not want to cause any tax events.
The big picture:
US Large Cap - 24%
US Mid/Small - 13%
International - 13%
Intermediate Bonds - 50%
Short-term Reserve - 0
In truth I held back about 5% that I already have planned for expenses over the next 1.5-2 years that is not included in their allocations.
They suggested these funds to blend with what I already have
Vanguard US Value Fund <VUVLX> - 2% - or Windsor II
Vanguard Total Bond Fund Admiral<VBTLX> - 50%
Vanguard Developed Markets Fund<VDMIX> - 8%
Vanguard Morgan Growth Fund<VMRAX> - 2%
Vanguard Total Stock Market Admiral<VTSAX> - 16%
My other funds that make up the rest of 50% Stocks are:
Dreyfus Midcap Value
DWS Small Cap Core
DWS Latin America
I plan to have VG put some of the bond side in a Shorterm Reserve fund, not sure what, other than money market at this point.
So what do you think of VGs AA and the suggested Vanguard funds?