Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
how is the Vanguard Target Retirement funds?
Old 11-11-2010, 07:19 PM   #1
Recycles dryer sheets
 
Join Date: Jul 2010
Posts: 51
how is the Vanguard Target Retirement funds?

looking to move my roth from ameriprise to vanguard. just started reading a few books on mutual funds but want to get my stuff out of that place asap. is the vangard target retirement funds a good place to start? i guess it's like all in one fund.

mark
__________________

__________________
dooo42 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!

Old 11-11-2010, 07:55 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,899
If you want a hands off investment, the Target Funds are a good choice. They come in different stock / bond allocations (different by target year), so check that to make sure you are comfortable with the particular one you choose.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 11-11-2010, 08:30 PM   #3
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,141
Quote:
Originally Posted by travelover View Post
If you want a hands off investment, the Target Funds are a good choice. They come in different stock / bond allocations (different by target year), so check that to make sure you are comfortable with the particular one you choose.
They are each a fund of funds. If go over to the VG site you can see exactly how they are structured.

https://personal.vanguard.com/us/fun...RetirementList

For example, here is the 2040 fund

https://personal.vanguard.com/us/fun...t#targetAnchor
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 11-11-2010, 10:24 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by dooo42 View Post
is the vangard target retirement funds a good place to start? i guess it's like all in one fund.
Yes, this would be a very good choice. As travelover recommended, look over the various target year asset mixes and pick one that has the right percent of stocks vs bonds for you.

You can leave your money there while you learn more about investing. You might decide, after reading a bit more, that you'd like to invest in some slightly different things, and you can do that. But I believe that if you just stuck with the single Vanguard target retirement fund and did nothing else until you retire that you'd get better investment results than the vast majority of individual investors, even ones who spend a lot of time chasing the latest "hot" investment trend.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 11-12-2010, 12:07 AM   #5
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Boy, this seems to be the "I hate Ameriprise and love Vanguard" month. People must be taking a new look at their portfolios and their "advisers"...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 11-12-2010, 06:21 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,900
The closest we have ever come to Ameriprise is going to one of their free dinners! Which, by the way, was held at the best restaurant in town, and filet mignon was on the menu. We enjoyed it, even the presentation on annuities I thought of "youse guys" several times during that presentation

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Amethyst is offline   Reply With Quote
Old 11-12-2010, 08:15 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,899
Quote:
Originally Posted by Amethyst View Post
The closest we have ever come to Ameriprise is going to one of their free dinners! Which, by the way, was held at the best restaurant in town, and filet mignon was on the menu. We enjoyed it, even the presentation on annuities I thought of "youse guys" several times during that presentation

Amethyst
The closest I came was a free review of my finances on the promise of a free companion airline ticket. The kid I talked to knew less about finances than me, wanted $800 for a "plan" and the terms and restrictions on the "free" companion ticket made it unusable by anyone but a masochist. Other than that.....wow what a business!
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 11-12-2010, 08:29 AM   #8
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,182
We have our Roths in Vanguard's 2015 retirement fund. I did switch them a little while back (earlier this year) from the 2020. Current 12 month performance for DW's is 14%, mine is just under 12%. I didn't switch them at the same time, therefore the difference.
__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Old 11-12-2010, 11:14 AM   #9
Recycles dryer sheets
Focus's Avatar
 
Join Date: Oct 2009
Posts: 473
I have all my 401(k) savings in a Vanguard target retirement fund, because of its low expense ratio and the fact it contains funds I can't otherwise access within the 401(k).

A couple of things to keep in mind:

Vanguard is in the process of replacing the target retirement funds' separate foreign index funds with the Vanguard Total International Stock Index Fund, which I consider an improvement, and increasing the percentage allocated to international stocks. (See this Vanguard page for details.) So, what you view now under the target retirement funds' "Portfolio & Management" tab on the Vanguard site will be changing.

Also, target retirement funds are designed, ideally, so the one you pick will be your sole fund. But that's not likely to be the case for most people -- especially those who, for tax purposes, do not want to have any bond funds in their taxable account . That's another reason to pick a target retirement fund based on its current asset allocation rather than the retirement year. You'll want to pick one that, combined with your other investments, will bring you to the overall asset allocation you want now, knowing that it will automatically increase the bond portion as the years go by.
__________________
Focus is offline   Reply With Quote
Old 11-12-2010, 03:25 PM   #10
Full time employment: Posting here.
Lusitan's Avatar
 
Join Date: Jan 2006
Location: Boston
Posts: 620
Vanguard Target Retirement funds are a great place to hold all of your retirement savings, or to hold as a base and then tweak with the addition of other funds to suit your particular goals. They are certainly a good place to park your money at Vanguard while you read up on things and figure out your preferred asset allocation etc.

Apart from the "hands-off rebalancing" concept (that over the years will slowly move the money in your Target Retirement fund away from stocks and into bonds) there is also the "I don't want to look!" rebalancing that takes place with large market swings. As the market tanked in 2008/2009, my Target Retirement fund was busy selling bonds and buying stocks on the downswing to keep the asset allocation in line -- something that frankly I did not have the guts to do myself, but which in retrospect paid off as the market rose.

Target Retirement funds are also a good way to save on fees because you can have exposure to several of Vanguard's index funds without needing to meet the minimum balance requirement for each of them.

Hard to go wrong with the Target Retirement funds ...
__________________

__________________
Lusitan 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
Vanguard Target Funds RockSplat FIRE and Money 21 01-03-2010 09:23 PM
Do Vanguard Target Retirement funds need to be "juiced up"? Dude FIRE and Money 16 02-11-2008 09:18 PM
Target Retirement Funds: Bond Funds vs Actual Bonds? Gearhead Jim FIRE and Money 11 10-23-2007 12:39 PM
Where should Target Retirement Funds go? Olav23 FIRE and Money 2 04-05-2006 12:24 AM
Vanguard Adding More Target Retirement Funds Lusitan FIRE and Money 23 03-21-2006 07:17 PM

 

 
All times are GMT -6. The time now is 12:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.