Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Too late to switch funds?????
Old 11-14-2004, 03:18 PM   #1
Confused about dryer sheets
 
Join Date: Nov 2004
Posts: 1
Too late to switch funds?????

Hello:
I'm new to the forums.Need some opinions and advice,here is my situation:
Male,63.Retired for two years.SS $850 month.
Only income.Need to withdraw about 16K a year.
Portfolios.Rollover IRA (60Ks)
STCB 42%
STHYX 20.6%
STADX 37.3%

IRA (90Ks)
VWELX 49.9%
PRITX 0.6
MDISX 29.3
JANSX 13.5
JAOSX 6.7.

Regular or taxable(160K)
VFIIX 0.49%
PRASX 2.1
PRITX 9.6
PRFDX 18.7
STADX 11.6
SLAFX 2.5
JAFIX 22.1
JAVLX 7.7

I'm transfering to Vanguard all my assets and I beleive
that I'll use Vanguard's LifeStrategy Conservative Growth Fund..........At my age is it safe enough and also
the withdraw rate.I have no childrens.no wife.......
I'm looking forward to your replies......many thanks.
__________________

__________________
Perry 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: Too late to switch funds?????
Old 11-14-2004, 04:54 PM   #2
 
Posts: n/a
Re: Too late to switch funds?????

Hi Perry! You came to the right place, but I guarantee
quite a few reading about your situation will think
that you should not be retired and need to go back to work ASAP Anyway, I think you are in good shape.
Welcome...............

John Galt
__________________
  Reply With Quote
Re: Too late to switch funds?????
Old 11-14-2004, 06:51 PM   #3
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Too late to switch funds?????

Perry, the LifeStrategy Funds have some appeal. Two reasons I don't use them:

1) I prefer to control my own mix, especially the bond portion.

2) I don't like the Asset Allocation Fund which makes up 25% of the portfolio. I don't want some fund manager timing the market with my money.

Vanguard started with a good idea (four different mixes of index funds that would fit most needs) and then they ruined it by cramming that fund into the mix, IMO.
__________________
Bob_Smith is offline   Reply With Quote
Re: Too late to switch funds?????
Old 11-15-2004, 09:57 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Re: Too late to switch funds?????

Bob_Smith said in part:


2) I don't like the Asset Allocation Fund which makes up 25% of the portfolio. I don't want some fund manager timing the market with my money.

Hey, I like the Vanguard Asset Allocation Fund (VAAPX), I have my Roth, about 10% of my $, in it. I actually like that someone is managing it at a fairly low fee and it has less volatility than the S&P500. I do not own other bonds except for Ibonds but I expect to get an inflation indexed pension. My 401k is in 4 index funds and I DRIP a few dollars each month into stocks. Thats my plan and I expect to retire in 2 or 3 years, I'm 54 now.
Thats my story and I'm sticking to it, unless I come up with a better one.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Re: Too late to switch funds?????
Old 11-15-2004, 10:40 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Too late to switch funds?????

[quote] Hello:
* * * * * * *I'm new to the forums.Need some opinions and advice,here is my situation:
* * * * * * * Male,63.Retired for two years.SS $850 month.
Only income.Need to withdraw about 16K a year.
* * * * * * * Portfolios.Rollover IRA (60Ks)

Perry: Welcome to the board.
Your Rollover IRA indicates 60k, did you mean 600k?
Advice would be much different on those two numbers.
Regards, Jarhead
__________________
Jarhead* is offline   Reply With Quote
Re: Too late to switch funds?????
Old 11-16-2004, 07:44 AM   #6
Recycles dryer sheets
 
Join Date: Nov 2003
Location: Charlotte
Posts: 360
Re: Too late to switch funds?????

We use Lifestrategy Growth in our Roths as these are a smaller part of our portfolio and want to be relatively diversified there. Bob, I looked at the Asset Allocation fund versus S&P 500 and not only is AA less volatile, it has out performed on 1, 3, 5 and 10 year periods.
bill
__________________
WilliamG is offline   Reply With Quote
Re: Too late to switch funds?????
Old 11-16-2004, 01:29 PM   #7
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Too late to switch funds?????

Quote:
Bob, I looked at the Asset Allocation fund versus S&P 500 and not only is AA less volatile, it has out performed on 1, 3, 5 and 10 year periods.
Bill, the AA fund is a mix of stocks, bonds, and cash. So I wouldn't compare it to the S&P 500. The AA fund has actually under-performed Wellington by quite a bit, but that's probably not a fair comparison either. Nevertheless, I have no faith in past performance. A manager who has been lucky recently, is a manager who is probably due to under-perform, IMO.

But the thing that concerns me the most about the AA fund is the fact that this is a market timing fund - they invest in the three major asset classes (stocks, bonds, and cash) and can hold as much as 100% in any one of those. So one is entirely dependent upon the judgment of the fund's management. I have no faith in anyone's ability to time the market, and I wouldn't want a fund that gives the manager the the ability to make 360 degree swings. I'm not saying it's a bad fund - I'm just saying that out of the hundreds of funds I could buy, this wouldn't be one of them. So it ruins the appeal of the LifeStrategy funds for me.
__________________

__________________
Bob_Smith 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
My 401k's expense ratios, Bogle, lowest-cost quartile data for stock funds? Dude FIRE and Money 19 02-07-2007 02:17 PM
Index funds beat most active funds JustCurious FIRE and Money 57 10-23-2006 12:14 PM
Vanguard Adding More Target Retirement Funds Lusitan FIRE and Money 23 03-21-2006 07:17 PM
Too Late for International Funds? Craig FIRE and Money 13 03-09-2005 07:46 PM
Is it late to get into energy sector funds Spanky FIRE and Money 20 02-12-2005 08:22 PM

 

 
All times are GMT -6. The time now is 01:31 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.