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I need Vanguard fund suggestions..
10-06-2010, 09:54 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,294
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I need Vanguard fund suggestions..
I'm rolling over my IRA to Vanguard's...psssst...Wellesley fund.
I'm considering sweeping the dividends into another fund that will be considered a cash account. It will be six and a half years before I will make any withdrawals. Any suggestions on conservative funds?
Thanks...
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10-06-2010, 10:10 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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With 6.5 years to go, I would probably just reinvest in Wellesley and revisit the decision in 3 or 4 years.
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10-06-2010, 10:14 AM
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#3
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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If you want a "cash account", then you might want to hold your nose and use one of Vanguard's money market funds that currently pay nada. But, personally, I think Wellesley is conservative enough that I would reinvest the dividends and let them compound over the next 6.5 years.
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10-06-2010, 10:23 AM
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#4
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Moderator Emeritus
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
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What Brewer said, or else think about short-term bond fund or short term treasury fund.
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San Francisco Area
ESR'd March 2010. FIRE'd January 2011.
As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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10-06-2010, 10:23 AM
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#5
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Recycles dryer sheets
Join Date: Sep 2010
Posts: 95
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On another note I am wondering if I invest 50000 bucks in the Wellesley fund should I do it through my current broker or sign up for Vanguard account? Any pluses or minuses to either approach? I may even want to go with 100K.
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10-06-2010, 10:27 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by afntrn56
On another note I am wondering if I invest 50000 bucks in the Wellesley fund should I do it through my current broker or sign up for Vanguard account? Any pluses or minuses to either approach? I may even want to go with 100K.
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Your current broker will likely charge a commission to do so.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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10-06-2010, 10:28 AM
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#7
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Recycles dryer sheets
Join Date: Sep 2010
Posts: 95
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Quote:
Originally Posted by brewer12345
Your current broker will likely charge a commission to do so.
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So I guess the answer would be to sign up for a Vanguard account then! Thanks,. BTW I use Ameritrade.
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10-06-2010, 10:54 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by afntrn56
So I guess the answer would be to sign up for a Vanguard account then! Thanks,. BTW I use Ameritrade.
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Might be a cheap commission............
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10-06-2010, 11:49 AM
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#9
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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Quote:
Originally Posted by bbbamI
I'm considering sweeping the dividends into another fund that will be considered a cash account. It will be six and a half years before I will make any withdrawals. Any suggestions on conservative funds?
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One option would be PenFed's five-year CDs, considering that if interest rates rise swiftly then you could "upgrade" to a new CD at the new higher rate. PenFed used to do this without penalties in IRAs, but even a 12-month penalty might be paid back by the higher rate. This CD option would give you the flexibility to let the money ride (if you don't actually need to make a withdrawal) or break into it if necessary (not too much of a penalty, especially for CDs in smaller amounts).
Another option if you don't actually need to make a withdrawal after six-seven years would be to stick to shorter-term CDs (one year? two years?) and let the cash pile up. You'll undoubtedly have a buying opportunity in an equity or bond fund during the next five years into which you could sink all of that cash. The caveat is that you might need another 5-10 years before this vulture approach pays off.
I let dividends/contributions pile up in our IRA accounts (which are otherwise invested in equities) and buy when the equity price dips below its long-term average. It sometimes takes 2-3 years of patience.
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10-06-2010, 12:55 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,294
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Thank you all for the excellent advice.
Seems I've got a bit of ponderin' to do....
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There's no need to complicate, our time is short..
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10-06-2010, 01:14 PM
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#11
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Recycles dryer sheets
Join Date: Sep 2010
Posts: 95
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they charge 49.99 worth signing up for Vanguard account?
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