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Retirement 2025/2040
Old 07-01-2005, 08:39 PM   #1
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Retirement 2025/2040

I am currently investing $200 a month in the T Rowe Price Retirement 2040 mutual fund. I am thinking about doing the same at Vanguard except I would invest in the Retirement 2025 fund. Does this manke any sense and if not why?

Thanks
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Re: Retirement 2035/2045
Old 07-02-2005, 12:46 AM   #2
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Re: Retirement 2035/2045

There is no perfect answer. The Vanguard funds are fairly conservative. I expect I would use the 2035 for my purposes but I am 54 and have a pension. You have to look at your circumstances and preferred asset allocation. All the funds are decent ones.
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Re: Retirement 2025/2040
Old 07-02-2005, 03:12 PM   #3
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Re: Retirement 2025/2040

Agreed. I'm surprised at how conservative the longer run vanguard funds are, but then again their main tenet, backed up by historic data, is that all ya need is some tsm or s&p500 and slip slowly into bonds. Foreign is fun but not much needed and everything else is hoo hah.
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Re: Retirement 2025/2040
Old 07-02-2005, 03:20 PM   #4
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Re: Retirement 2025/2040

I have always invested in index funds, but from what I read, the vanguard actively managed funds are "less evil" than the average active mf.

I would look at expenses and turnover, stocks in the port. and long term perf. I guess I figure this is all too much work and index.
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Re: Retirement 2025/2040
Old 07-02-2005, 06:38 PM   #5
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Re: Retirement 2025/2040

Vanguard does have some good actively managed funds. I am mostly indexed in that my Govt retirement (TSP) system is mostly indexed. But my Roth is in Vanguard Asset Allocation (VAAPX) and I really like this fund, it suits my investment attitude in that whenever I start to figure its time to shift between stocks and bonds I notice they have already just moved in that direction. Now my orientation could be wrong but their investment approach is just what I would do.
There are a good number of indexed funds, managed funds, fund of funds and target funds just pick one or more and keep to a plan and it will probably work. A good fund with low costs and a long time is almost certain to work. Lots of people lose lots of money on high costs and getting in and out at the wrong times.
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Re: Retirement 2025/2040
Old 07-02-2005, 08:44 PM   #6
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Re: Retirement 2025/2040

So are you saying that the Vanguard Asset Allocation fund may be a better choice than the 2025 fund?
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Re: Retirement 2025/2040
Old 07-03-2005, 12:22 AM   #7
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Re: Retirement 2025/2040

Quote:
Originally Posted by geeman
So are you saying that the Vanguard Asset Allocation fund may be a better choice than the 2025 fund?*
No, I am saying that it is a better fund for me. I feel comfortable with it and it fits into my other financial elements. I would recommend it for a lot of folks as it has decent returns a less volitility than the S&P500 but I have found a number of interesting funds from Vanguard and other places (Fidelity, Dodge & Cox) but I started with VAAPX and it worked and I see no reason to get rid of it now.

My wife will be retiring next year and I expect to roll her 403b funds into a Vanguard 2025 or 2035 fund as I think it would work well enough with her partially COLAd pension, so she needs less bonds IMHO. But I will keep out Roths in VAAPX. I like all my holdings now except I am late to learning about REITs and I want to have some except I am not willing to buy them now. Oh, I also have a few ibonds because of inflation concerns.

Long answer to a simple question. Just saying I found a fund I personally really like (like some like Windsor of Wellsley) but I am not saying it is for everyone.
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Re: Retirement 2025/2040
Old 07-05-2005, 01:06 PM   #8
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Re: Retirement 2025/2040

Does anyone know much about the Dodge & Cox Income fund? DODIX
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Re: Retirement 2025/2040
Old 07-05-2005, 01:14 PM   #9
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Re: Retirement 2025/2040

DODIX is more or less and intermediate term bond fund, comparable to Vanguard's Vanguard Total Bond Market Index Fund [VBMFX].

DODIX holds Treasuries, Corporates, and Mortgage bonds. Its expense ratio is 0.44%, which is quite good.

- Alec
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Re: Retirement 2025/2040
Old 07-05-2005, 01:19 PM   #10
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Re: Retirement 2025/2040

Would this fund be good for a longterm invester. I'm 22 years old and would plan to DCA it over the next 20/25 years.
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Re: Retirement 2025/2040
Old 07-05-2005, 11:03 PM   #11
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Re: Retirement 2025/2040

geeman; you probably need to study this subject a bit more before deciding on a specific fund.
But with your time horizon it does not make sense not to get exposure to equity also. Dodge and Cox have a good balanced fund DODBX (meaning holds both equities and bonds) as does Vanguard (VBINX) and others.
Cheers!
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Re: Retirement 2025/2040
Old 07-06-2005, 07:37 AM   #12
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Re: Retirement 2025/2040

Quote:
Originally Posted by ben
geeman; you probably need to study this subject a bit more before deciding on a specific fund.
But with your time horizon it does not make sense not to get exposure to equity also. Dodge and Cox have a good balanced fund DODBX (meaning holds both equities and bonds) as does Vanguard (VBINX) and others.
Cheers!
D&C Balanced has been one of my core holdings for years and has performed very well. Unfortunately for geeman, it is closed to new investors.

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Re: Retirement 2025/2040
Old 07-06-2005, 07:54 AM   #13
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Re: Retirement 2025/2040

Yeah, I was looking at the D&C balanced fund, too bad it's closed. I wonder if Vanguard (VBINX) would treat me well over the next 30 years.

I do also have:

T Rowe Price:
Mid-Cap Value
New Asia
Retirement 2040
Real Estate

Vanguard (Roth IRA):
Vanguard 500 Index Fund Investor Shares
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