Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Portfolio
Old 07-06-2011, 06:15 AM   #1
Dryer sheet aficionado
 
Join Date: May 2011
Posts: 41
Portfolio

I have some cash sitting inside an IRA that is in the prime money market account at Vanguard & I am thinking about a 50/50 split in Vanguard of the Dividend Stock Index and High Yield Corporate Bond Index instead of using Wellington Fund. Bulk of my retirement fund is in a diversified portfolio with my old job. I am probably going to roll it all over to Vanguard as I am retired. Any thoughts??
__________________

__________________
sundance 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 07-06-2011, 06:57 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,210
I had a few rollover IRA's and old 401k's due to job changes in the past, and decided to move all of them into Vanguard. From a mental perspective, I am glad I did as I now have virtually all of my retirement funds in one place -- it makes life simpler.
From a financial perspective, it helped in that the aggregate amount got me the free advice of a Vanguard financial advisor. While I didn't follow all of his suggestions, he did give me the knowledge base I needed to help in allocating my and DW's retirement funds. Without knowing your specific financials, all other things being equal I would recommend rolling your retirement $$ to Vanguard or one of the other trusted fund families.
__________________

__________________
mystang52 is online now   Reply With Quote
Old 07-06-2011, 09:21 AM   #3
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
I would suggest you educate yourself more about asset classes and diversification. Read William Bernstein's book The Investor Manifesto. It's a pretty straight forward presentation.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 07-06-2011, 10:18 AM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Quote:
Originally Posted by Carol911 View Post
I have some cash sitting inside an IRA that is in the prime money market account at Vanguard & I am thinking about a 50/50 split in Vanguard of the Dividend Stock Index and High Yield Corporate Bond Index instead of using Wellington Fund. Bulk of my retirement fund is in a diversified portfolio with my old job. I am probably going to roll it all over to Vanguard as I am retired. Any thoughts??
What 2B is pointing out is that you're asking a trick question.

You haven't said anything about your overall asset allocation or your plans for the money. Heck, you haven't even discussed why the 50/50 split is a better deal than Wellington.

Our thoughts are that you need to figure out what overall asset allocation makes you most comfortable with risk, volatility, and return. It'd be good to decide when you're going to rebalance. You might even go as far as a Bogleheads' "Investment Policy Statement". But even with just an asset-allocation plan, then you'll quickly be able to decide what to do with the IRA cash.

Otherwise you're just randomly hunting & pecking around the root problem.
__________________
*
*

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 07-06-2011, 12:43 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
I have to go along with what the others said.

Let me ask you this: Why did you pick those two funds? What's your plan?
__________________
LOL! is offline   Reply With Quote
Old 07-06-2011, 06:41 PM   #6
Dryer sheet aficionado
 
Join Date: May 2011
Posts: 41
I have a 401K with my former employee. Its asset allocation is about 80/20 Lge cap, Mid cap, small cap, international & Total Bond index fund (20%) each. So I thought I would put this in dividend paying stocks & a corporate bond index. Its been in cash way too long. We are in the process of moving my husband's 401k over to Vanguard. He also has an IRA with them (the Wellington Fund ) I thought my idea was straight forward. Are Corporate Bonds too risky
__________________
sundance is offline   Reply With Quote
Old 07-06-2011, 08:23 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
High-yield corporate bonds is a euphemism for junk-bonds. They have stock-like risk.

Investment-grade corporate bonds, particular short-term ones, are riskier than Treasuries, but not as risky as stocks.

Your total bond index has corporate bonds in it. Lots of them.
Your large-cap, mid-cap, and small-cap funds have dividend-paying stocks in them. Lots of them.

I see no reason to have something different than what you already have in the 401(k). You didn't really explain why something different would be desirable.

I looked up the past thread you started about IFA. Did you follow any of the advice in that thread? Just wondering.
__________________
LOL! is offline   Reply With Quote
Old 07-06-2011, 09:49 PM   #8
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Quote:
Originally Posted by LOL! View Post
I looked up the past thread you started about IFA. Did you follow any of the advice in that thread? Just wondering.
Ah, another poster whose approach seems to be "I'm not going to read any of the textbooks or do any of the homework... I'm just going to keep asking questions."
__________________
*
*

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 07-07-2011, 06:58 PM   #9
Dryer sheet aficionado
 
Join Date: May 2011
Posts: 41
Everybody thanks for the info. I understand asset allocation but quite frankly I am not sure I buy into the whole diversification since the "BIG DROP". I guess you can say I lost courage but . My husband (little grumpy) and I are moving money from our old company. He's moving his to Vanguard & I'm moving mine to I'm not sure. We are doing my version of slice & dice. I 'm not sure I want everything in one spot. I am thinking T Roe or T.D. Ameri. BUT I will not be doing IFA. Get back to you later
__________________
sundance is offline   Reply With Quote
Old 07-07-2011, 07:41 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
I prefer WellsFargo PMA relationship with free commissions to my other financial institutions including Vanguard, TDAmeritrade, and Fidelity. All of these have no commissions on at least a selection of usable ETFs. So if you don't want to go to Vanguard, there are other options with no commissions. TRowePrice is not one of them.

At this point in time, everybody should have completely recovered from the BIG DROP. That by itself should be confirmation that asset allocation along with rebalancing works and that fear does not work.
__________________
LOL! is offline   Reply With Quote
Old 07-08-2011, 04:54 AM   #11
Dryer sheet wannabe
 
Join Date: Jul 2011
Posts: 16
I'd pass on the Dividend Stock Index, and be inclined to buy a few high quality dividend stocks / partnerships / REITs (with the down RE Market). Have the dividends pay into a seperate money account for spending or gifting.
__________________

__________________
mmgoebe 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
Should a retiree own International funds? Tiger FIRE and Money 42 07-09-2011 08:32 PM
Another Study Challenging the 4% SWIP Rule chinaco FIRE and Money 49 07-04-2011 08:37 AM
Risk Averse Boomers mickeyd FIRE and Money 2 07-03-2011 06:51 AM
If you outlive your SWR time horizon? Onward FIRE and Money 24 06-29-2011 08:55 PM
50 yo with speculative portfolio NEOP Hi, I am... 28 06-25-2011 05:52 AM

 

 
All times are GMT -6. The time now is 12:15 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.