Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Fund Advice
Old 03-03-2006, 11:17 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Fund Advice

I asked something like this a while back but time has passed and we are closing in having to make a decision. I am looking for a single fund recommendation, probably with Vanguard. My wife is scheduled to retire from teaching in June of this year. She is 58 and will RE by her fellow teachers standards. I have generally proposed she transfer her 403b into a Vanguard IRA when she retires, probably the Target Retirement 2025 Fund (VTTVX) which is about 58% stock. Due to the crazy structure of her teachers 403b we cannot transfer the entire amount until she is 59.5 without a “contingent deferred fee”. Since she could not withdraw from an IRA until 59.5 anyway and we do not need the money immediately (I am still working) this is just a small complication. I expect she will draw 4% or 5% a year of whatever is in the fund at 59.5.
As she will have a partially COLAd pension and I am still working and I will have a fully COLAd pension I do not think she needs a lot of bonds. We do not have a definitive AA but the general outline of our holdings are: we have Roth IRAs with VG the Asset Allocation Fund (VAAPX) we are pretty satisfied with it. We hold six individual DRIP stocks. Not part of our AA but almost as critical as our pensions, we own our home mortgage free which is about equal (at crazy California RE rates) to our financial holdings.

6% Roth IRA, Vanguard Asset Allocation VAAPX
29% 403B (Made up of 4 stock mutual funds which will end when transferred to VG)
48% Federal retirement TSP (401k type) in a Lifecycle type fund
8% 6 DRIP Stocks all mid or small caps
9% Cash


Two other funds we have looked at are the VG Star Fund is about 63% stock (VGSTX) and VG Lifestratedgy Growth about 65% stock (VASGX). Something like 50% total stock market, 25% international stock and 25% total bonds would be my idea of a perfect fund.

__________________

__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Fund Advice
Old 03-04-2006, 07:02 AM   #2
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Fund Advice

Quote:
Originally Posted by yakers
Two other funds we have looked at are the VG Star Fund is about 63% stock (VGSTX) and VG Lifestratedgy Growth about 65% stock (VASGX). Something like 50% total stock market, 25% international stock and 25% total bonds would be my idea of a perfect fund.
If that's the allocation that you want, why restrict to only one fund? Buy the three funds. Below is a list of retirement funds, but none of them is close enough to your target.

Vanguard Target Retirement 2035 Fund
60.8% US
15.2% International

Vanguard Target Retirement 2025 Fund
46.3% US
11.7% International

Fidelity Freedom Funds 2015 Fund
50% US
8% International

T. Rowe Price RETIREMENT 2010 FUND
Domestic Stock 51.8%
Foreign Stock 13.1%

T. Rowe Price RETIREMENT 2015 FUND
Domestic Stock 55.3%
Foreign Stock 15.1%
__________________

__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Fund Advice
Old 03-04-2006, 07:57 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Fund Advice

Pssst...wellesley...

Did I even look a little bit like unclemick when I said that?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Fund Advice
Old 03-04-2006, 02:45 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Re: Fund Advice

Actually we just chose....Wellesley. I tend to like index funds but this had a nice risk reward profile for us. It may not make the top return but has very few negative years. Part of it is psychology. My wife can stand a little volatility, I told her we would have some correction around 2000, maybe 20% so she wasn't so happy when one fund lost 40%. But she likes how the funds have grown over time. But we are older, she is retiring and I do not want to have to explain big losses unless I can show her, hey-the market went down 30% and we "only" lost 10% or something like that.
When all the funds are transferred, which may take 18 months to avoid contingent deferred fees, we may go with a different fund selection/s. VG is offering my wife some advice on her AA which will be interesting to hear. I wonder how they will factor in COLAd pensions. But it will be "free advice". I have been very comfortable with fund selection over the last 10 years so they will have to propose a pretty compelling case to change anything.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Withdrawals From Target Retirement Type Fund yakers FIRE and Money 14 02-17-2007 08:01 PM
Lingo: Stock fund vs Mutual Fund Sam FIRE and Money 9 05-26-2006 11:44 AM
Specific Fund Transaction Advice TromboneAl FIRE and Money 7 12-09-2005 11:45 AM
Asset Allocation/Fund Advice yakers FIRE and Money 30 03-13-2005 07:43 PM
Fund Comfort VS Return yakers FIRE and Money 2 11-01-2004 02:58 PM

 

 
All times are GMT -6. The time now is 06:34 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.