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Which Vanguard fund
Old 11-03-2008, 05:12 PM   #1
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Which Vanguard fund

I am looking to move my small traditional IRA from my credit union to Vanguard. I am 54 and estimate I will need to begin disbursements in perhaps 10 years. If you were me, with what you know, in which fund/s would you put the money. I am moderately conservative. Thanks for your opinions in advance. I can't think of a better bunch to ask!
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Old 11-03-2008, 05:29 PM   #2
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I am looking to move my small traditional IRA from my credit union to Vanguard. I am 54 and estimate I will need to begin disbursements in perhaps 10 years. If you were me, with what you know, in which fund/s would you put the money. I am moderately conservative. Thanks for your opinions in advance. I can't think of a better bunch to ask!
Many questions come to mind...what stock to bond split are you comfortable with? About 60%stock/40%bond you could go with Wellington, STAR, Lifestrategy Moderate or Balanced Index. About 40%stock/60% bond you could go with Wellesley or Lifestrategy Conservative. Or any combination of those funds. There are also many different strictly bond funds they offer. Best advice is to go to www.vanguard.com and spend some serious time there doing some research on the funds they offer before making any decision. Good luck to you. DD
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Old 11-03-2008, 05:49 PM   #3
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If it were me I would go with the Wellesley, but I am conservative. The Wellesley is only down about 13% other boats in the sea have taken in alot more water than the Wellesley boat.
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Old 11-03-2008, 06:22 PM   #4
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wellington, or one of the target funds.
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Old 11-03-2008, 06:38 PM   #5
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I'd second the target fund idea. If you find the asset allocation for your retirement year is too aggressive, you can buy a target fund that matures sooner (and thus has a more conservative bond / stock ratio).
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Old 11-03-2008, 10:15 PM   #6
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I am presuming that your IRA is in cash at the present time since it's with a credit union. I'd recommend putting all of the proceeds in Total Stock Market. We're probably at or near the bottom of one of the worst bear markets in history, so you'll be probably be buying very low. You won't need the money for 10 years, so you'll have plenty of time to ride out the ups and downs of the market. This strategy will give you the biggest bang for your buck and you'll probably never regret it.
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Old 11-03-2008, 10:33 PM   #7
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Well, you admit it is "small" which must mean that you have some other investments. You should have an asset allocation figured out already. So how does this IRA fit in with all your other investments? You haven't given us enough info to allow us to give you any valid advice.

For more help, check out "asking portfolio questions" at Bogleheads :: View Forum - Investing - Help with Personal Investments
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Old 11-04-2008, 04:32 AM   #8
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Thanks so much for the input everyone! My husband is a retired teacher who is now working for an education non-profit. I have been a stay-at-home Mom since my first child was born. We have a COLA'd pension, currently $4100 a month which is more than we need to live. House is paid off. I would receive survivor benefits with no reduction. We have $56,000 in Tiaa Cref and $16,000 in the credit union IRA I mentioned. Our last child is in college in his final year and we've cash flowed his entire tuition and expenses as well as the previous two kids. The investments outside the pension will function as an OH SH!T! fund. I hope this extra information helps.
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Old 11-04-2008, 06:55 AM   #9
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............. The investments outside the pension will function as an OH SH!T! fund............
OH SH!T funds should be in a money market fund. If invested in stocks, you could be forced to sell at a loss.
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