Help me pick a Vanguard fund for our Roth IRA's

[tsturbo]

I have a 401k thru Vanguard with a pretty diversified AA of index funds, 60% equity & 40% bond following a 'buy and hold strategy. Here it is:

Fund Name Symbol Asset Class Percent
Vanguard 500 Index (VFINX) LCB 6.00%
Vanguard Value Index (VIVAX) LCV 6.00%
Vanguard Small Cap Index (NAESX) SCB 6.00%
Vanguard Small Cap Val Index (VISVX) SCV 6.00%
Vanguard REIT Index (VGSIX) REIT 6.00%
Vanguard Dev Markets Index (VDMIX) Int'l LCB 12.00%
Vanguard International Value (VTRIX) Int'l LCV 12.00%
Vanguard Emerging Mkt Index (VEIEX) EM 6.00%
Vanguard Short-Term Treasuries(VFISX) ST Bond 12.00%
Vanguard Int-Term US Treasuries(VFITX) IT Bond 20.00%
Vanguard Inf-Protected Securities(VIPSX) TIPS 8.00%

My wife and I (both 50) have Roth IRA's with Vanguard, mine in the Wellington fund and hers in the Star fund. Both of these are actively managed, I tend to believe index funds are better in the long run. We plan to retire within 15 years from full time employment, possibly a little sooner. Are there other funds you would consider for the 401's other than these? I tend to like a moderate allocation, hence the 60/40. Thanks

 

[LOL!]

Want a very detailed response? Then go to Bogleheads :: View Forum - Investing - Help with Personal Investments , read the "Stickies" and several threads just like yours, then ask over there in their format found in the "Stickies"

You will find that some folks like simplicity and would pick Total Stock Market, FTSE-all world ex-US, and a couple of bond funds: VIPSX and Total Bond Index. Did you get your advice from fundadvice.com ? Nothing wrong with that either.

 

[tsturbo]

Yes fund advice is where I got the 60/40 allocation and I have been following it for the past two years, it just seems to make a lot of sense to me and it allows me to sleep at night, or at least it did until Sept/Oct meltdown of the entire stock mkt.

 

[martyb]

Our Vangurad Roths are about as simple as you can get...we have them in their Target Retirement funds. Set it & forget it.

 

[RE2Boys]

I too have my Roth IRAs in Wellington. My traditional IRAs are in Retirement 2015. Reasoning is I must do RMDs in the traditional. The Roths may never get touched and be passed on as part of estate.

RE2Boys

 

[Animorph]

I like the FundAdvice AA, though I've been using mostly active funds and 100% equities. I added an Energy allocation, but that's about it.

 

[yakers]

My Roth is in VAAPX the VG Asset Allocation Fund, pretty much matches the S&P500, I figured it is a balanced fund of sorts, (it can and sometimes does hold bonds but is 100% equities or cash right now). It did OK in the tech bust but has not done so well in the recent decline. I figured as it sometimes has bonds that that a tax free or deferred account would be OK. Now my wife has done better with 100% of her IRA in Wellesley . I kind of like the Star fund and may add that fund sometime.

 

[Dennis]

IMO At-a-Glance? > Reits and Small caps

That's what Alot of Pro's are loading up in their clients Ports..

I watch over a Dozen of them..

did the same in 02'...

 

[Dennis]

60/40 might be ok, but FYI.. Do a 40/60 for past 10 yrs for apy's and On a Per $10k Invested basis..

and VWINX as well..
and Compare to OAKBX for your 60/40 ports.. for the same timeframe.. You're loosing out on quite a bit of $..especially on a $10k Cost basis.. +43% difference after 10 yrs.. VWINX = About $16k and OAKBX = $23k values..

 

[Animorph]

I like oakbx as well, and I have me and my sons in it.

But... it's past performance certainly stands out from other balanced funds. To me that means they've most likely been the lucky active fund in the past. Even over the past 10 years all it took was good 2000-2002 bets to look really good. The future will probably look a lot more mundane. Even so, if they can keep it going I'll be there.

If you like index funds I'd stick with them.

 

[tsturbo]

I too have my Roth IRAs in Wellington. My traditional IRAs are in Retirement 2015. Reasoning is I must do RMDs in the traditional. The Roths may never get touched and be passed on as part of estate.

RE2Boys

Sorry for the ignorance, but what are "RMD's"?

 

[tsturbo]

60/40 might be ok, but FYI.. Do a 40/60 for past 10 yrs for apy's and On a Per $10k Invested basis..

and VWINX as well..
and Compare to OAKBX for your 60/40 ports.. for the same timeframe.. You're loosing out on quite a bit of $..especially on a $10k Cost basis.. +43% difference after 10 yrs.. VWINX = About $16k and OAKBX = $23k values..

I like Oakmark funds also, but they are not an option, only Vanguard funds.

The Target Retirement folks, How good are these funds? I have heard both pro and con, I am currently undecided about putting my money into a TR fund.

 

[RE2Boys]

Sorry for the ignorance, but what are "RMD's"?

Required Minimum Distributions (RMD). In a traditional IRA you must begin drawing down your retirement savings when you reach 70 1/2 years old and continue for the rest of your life (or the IRA is depleted). And if I choose, I can start tapping the TRraditional IRA next year. This consideration does not apply to Roth IRAs. Hence, a different investment for different IRAs.

RE2Boys

 

[tsturbo]

Thank you, makes sense