vanguard target fund

windsurf · 04-21-2005, 06:21 PM

As I had posted in the introduction section, I am leaving my law firm after 25 years and need to figure out what to do with my 401k. I am considering putting it into the Vanguard 2015 Target fund which is a ten year stretch to actual retirement. The reason I would pick that target is that I hope to not have to touch those funds for at least ten years. I am looking for any opinions you all have on that plan. I have learned tons from the variety of opinions expressed in this forum and look forward to your comments. 8)

wildcat · 04-21-2005, 09:05 PM

Sorry windsurf but I don't like the Target funds as a whole. If you do invest I would make sure you know exactly what the allocation is (and follow it) and make sure it will be appropriate for your needs.

So you are wondering why I don't the Target retirement funds right? I don't like the one size fits all idea. The link below is an article about Target funds and kind of touches on why I dislike them. My nickels worth.

http://moneycentral.msn.com/content/P112441.asp

unclemick · 04-22-2005, 05:52 AM

The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY!

All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer.

Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004.

Don't confuse serious retirement with male hormonal urges.

I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.

Dawg54 · 04-22-2005, 06:46 AM

Quote:

The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY!

All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer.

Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004.

Don't confuse serious retirement with male hormonal urges.

I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.

Good post!!! Not sure about the Saints tho

unclemick · 04-22-2005, 07:22 AM

The one great stock and the Saints in the Superbowl!!

36?? yrs and waiting.

Hope springs eternal.

wildcat · 04-22-2005, 07:40 AM

They may work in the sense you will make you money & offer low expenses but I think you can do better in terms of return. Asset allocation for a better return has nothing to do with male hormones. If you don't want to worry about allocation and rebalancing then go with the Target fund.

wildcat · 04-22-2005, 07:48 AM

unclemick -

What happens with the Target funds once you reach the retirement date? Do they continue to allocate your assets or is it up to you?

Dawg54 · 04-22-2005, 08:54 AM

Quote:

unclemick -

What happens with the Target funds once you reach the retirement date? *Do they continue to allocate your assets or is it up to you?

They continue to allocate for you. On the Saints.......I hope I can watch the Super Bowl from the big screen in the sky because I will be long gone before they play in it. (hope i'm wrong)

cute fuzzy bunny · 04-22-2005, 09:04 AM

Louisiana has a football team?

GO PATS!!

Nords · 04-22-2005, 09:13 AM

Quote:

I hope I can watch the Super Bowl from the big screen in the sky because I will be long gone before they play in it. (hope i'm wrong)

On the day after the Red Sox won the World Series, I talked with a woman wearing her grandfather's Red Sox uniform shirt (the kind you buy in a souvenir shop, not the kind you get for being part of the team). As she was the family's second-most rabid fan, he had willed it to her specifically for her to wear when they got to the Series in hopes that they'd win it.

She had tears in her eyes when she told the story. I hope they were for her grandfather, not the Sox...

wildcat · 04-22-2005, 09:46 AM

So if Vanguard continues to allocate the assets for you then how is that the best way to go? Some people live longer than others and some people require more money than others. One size fits all to me can be too conservative for some based on the reasons above. You could always change your funds I guess.

ronin · 04-22-2005, 10:09 AM

Not only does one size not fit all, the same type of funds are cut way differently. *Compare the composition of the very conservative Vanguard to a comparable target dated T Rowe Price, for example.
There's some comps here: http://www.marketwatch.com/news/stor...den=&minisite=

Dawg54 · 04-22-2005, 10:54 AM

Quote:

Not only does one size not fit all, the same type of funds are cut way differently. *Compare the composition of the very conservative Vanguard to a comparable target dated T Rowe Price, for example.
There's some comps here: http://www.marketwatch.com/news/stor...den=&minisite=

Choices choices.......whats a fool to do?

BigMoneyJim · 04-22-2005, 11:05 AM

When I looked at the Target Retirement series I decided to go for the Lifestrategy series instead. Target Retirment increases bond % approaching and into retirement while LifeStrategy doesn't change allocation (except for the Asset Allocation portion which is a managed fund that says it can go anywhere between 100% stock and 100% bond as the manager sees fit). If I wanted to increase bond allocation over time I'd want more direct control of it.

Aside from my personal allocation wishes I have nothing against Target Retirement, and I like the built-in rebalancing (which Lifestrategy also has).

A couple of the W funds are worth looking into as well. I mix them up, but of Wellington, Windsor and Wellesley there are one or two good managed balanced funds. I think I'm in Wellington, but like I say I confuse these funds badly in casual conversation.

By the way, I have two balanced funds because I don't have Lifestrategy available in my 401(k). I also have some additional international index exposure and some REIT index thrown in for variety and to keep my equity allocation higher than the balanced funds provide.

charlie · 04-22-2005, 05:22 PM

One thing that I don't like about Vanguard's
balanced index funds is that the US stock
allocation is either Total Stock Market or Index 500.
Large Cap Value and Small Cap Value are not
represented enough for my taste and rather
short term outlook (age 70). I prefer Wellington
and Wellesley for their large cap value emphasis.
Look at the recent bubble and burst in Large Growth
and Technology to get my drift.

OTOH, I don't think there will be much difference
in loooong term return between Wellington, STAR,
Target Retirement 2025, LifeStrategy Moderate
Growth or Balanced Index (all 60/40 funds).

They are all great funds and will serve you well.

Cheers,

Charlie

windsurf · 04-23-2005, 05:34 AM

Thanks to everyone for the sage and, as I expected, divergent advice. I have got a couple of months to ponder this. The 401k is not all but a substantial chunk of the eggs I have in my basket.

eleighj · 04-24-2005, 06:11 AM

Quote:

The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY!

All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer.

Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004.

Don't confuse serious retirement with male hormonal urges.

I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.

Unclemick,

You are 100% correct.

eleighj

wildcat · 04-24-2005, 02:42 PM

Still not convinced

cute fuzzy bunny · 04-24-2005, 07:28 PM

I agree with charlie...the tsm and s&p500 just dont give one a broad enough exposure to asset classes that have done well or that I expect to do better...reit, value, small caps, energy, etc.

I also dont like them at all at these nosebleed valuations. Anyone who has been in the s&p500 or TSM has stood still for the last 5 years (actually lost money per annum).

If stocks were at a more rational pricing, I'd nod in agreement...from here I dont see anything in a large cap index than downside.

I'll take the dividends and keep my conservative slice and dice for the time being... :-/

windsurf · 04-25-2005, 06:01 AM

TH, what is your "conservative slice and dice" comprised of or is that proprietary? * *8)

04-21-2005, 06:21 PM	#1
windsurf Recycles dryer sheets Join Date: Mar 2005 Posts: 296	vanguard target fund As I had posted in the introduction section, I am leaving my law firm after 25 years and need to figure out what to do with my 401k. I am considering putting it into the Vanguard 2015 Target fund which is a ten year stretch to actual retirement. The reason I would pick that target is that I hope to not have to touch those funds for at least ten years. I am looking for any opinions you all have on that plan. I have learned tons from the variety of opinions expressed in this forum and look forward to your comments. 8)

04-21-2005, 09:05 PM	#2
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: vanguard target fund Sorry windsurf but I don't like the Target funds as a whole. If you do invest I would make sure you know exactly what the allocation is (and follow it) and make sure it will be appropriate for your needs. So you are wondering why I don't the Target retirement funds right? I don't like the one size fits all idea. The link below is an article about Target funds and kind of touches on why I dislike them. My nickels worth. http://moneycentral.msn.com/content/P112441.asp __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

04-22-2005, 05:52 AM	#3
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Location: north of Kansas City Posts: 5,553	Re: vanguard target fund The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY! All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer. Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004. Don't confuse serious retirement with male hormonal urges. I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.

04-22-2005, 07:22 AM	#5
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Location: north of Kansas City Posts: 5,553	Re: vanguard target fund The one great stock and the Saints in the Superbowl!! 36?? yrs and waiting. Hope springs eternal.

04-22-2005, 07:40 AM	#6
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: vanguard target fund They may work in the sense you will make you money & offer low expenses but I think you can do better in terms of return. Asset allocation for a better return has nothing to do with male hormones. If you don't want to worry about allocation and rebalancing then go with the Target fund. __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

04-22-2005, 07:48 AM	#7
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: vanguard target fund unclemick - What happens with the Target funds once you reach the retirement date? Do they continue to allocate your assets or is it up to you? __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

04-22-2005, 09:04 AM	#9
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Re: vanguard target fund Louisiana has a football team? GO PATS!! __________________ Many an optimist has become rich by buying out a pessimist

04-22-2005, 09:46 AM	#11
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: vanguard target fund So if Vanguard continues to allocate the assets for you then how is that the best way to go? Some people live longer than others and some people require more money than others. One size fits all to me can be too conservative for some based on the reasons above. You could always change your funds I guess. __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

04-22-2005, 10:09 AM	#12
ronin Recycles dryer sheets Join Date: Oct 2003 Posts: 442	Re: vanguard target fund Not only does one size not fit all, the same type of funds are cut way differently. *Compare the composition of the very conservative Vanguard to a comparable target dated T Rowe Price, for example. There's some comps here: http://www.marketwatch.com/news/stor...den=&minisite= __________________ a surfer who hasn't wised up to the importance of hard shoes....

04-22-2005, 11:05 AM	#14
BigMoneyJim Thinks s/he gets paid by the post Join Date: Feb 2003 Posts: 2,390	Re: vanguard target fund When I looked at the Target Retirement series I decided to go for the Lifestrategy series instead. Target Retirment increases bond % approaching and into retirement while LifeStrategy doesn't change allocation (except for the Asset Allocation portion which is a managed fund that says it can go anywhere between 100% stock and 100% bond as the manager sees fit). If I wanted to increase bond allocation over time I'd want more direct control of it. Aside from my personal allocation wishes I have nothing against Target Retirement, and I like the built-in rebalancing (which Lifestrategy also has). A couple of the W funds are worth looking into as well. I mix them up, but of Wellington, Windsor and Wellesley there are one or two good managed balanced funds. I think I'm in Wellington, but like I say I confuse these funds badly in casual conversation. By the way, I have two balanced funds because I don't have Lifestrategy available in my 401(k). I also have some additional international index exposure and some REIT index thrown in for variety and to keep my equity allocation higher than the balanced funds provide.

04-22-2005, 05:22 PM	#15
charlie Thinks s/he gets paid by the post Join Date: Mar 2004 Location: Dallas Posts: 1,069	Re: vanguard target fund One thing that I don't like about Vanguard's balanced index funds is that the US stock allocation is either Total Stock Market or Index 500. Large Cap Value and Small Cap Value are not represented enough for my taste and rather short term outlook (age 70). I prefer Wellington and Wellesley for their large cap value emphasis. Look at the recent bubble and burst in Large Growth and Technology to get my drift. OTOH, I don't think there will be much difference in loooong term return between Wellington, STAR, Target Retirement 2025, LifeStrategy Moderate Growth or Balanced Index (all 60/40 funds). They are all great funds and will serve you well. Cheers, Charlie

04-23-2005, 05:34 AM	#16
windsurf Recycles dryer sheets Join Date: Mar 2005 Posts: 296	Re: vanguard target fund Thanks to everyone for the sage and, as I expected, divergent advice. I have got a couple of months to ponder this. The 401k is not all but a substantial chunk of the eggs I have in my basket.

04-24-2005, 02:42 PM	#18
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: vanguard target fund Still not convinced __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

04-24-2005, 07:28 PM	#19
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Re: vanguard target fund I agree with charlie...the tsm and s&p500 just dont give one a broad enough exposure to asset classes that have done well or that I expect to do better...reit, value, small caps, energy, etc. I also dont like them at all at these nosebleed valuations. Anyone who has been in the s&p500 or TSM has stood still for the last 5 years (actually lost money per annum). If stocks were at a more rational pricing, I'd nod in agreement...from here I dont see anything in a large cap index than downside. I'll take the dividends and keep my conservative slice and dice for the time being... :-/ __________________ Many an optimist has become rich by buying out a pessimist

04-25-2005, 06:01 AM	#20
windsurf Recycles dryer sheets Join Date: Mar 2005 Posts: 296	Re: vanguard target fund TH, what is your "conservative slice and dice" comprised of or is that proprietary? * *8)