1. Call Vanguard and ask for some literature on asset allocation.
2. Decide on asset allocation.
3. Insure they have appropriate level of cash available as a "rainy-day fund". The worst thing they could do is withdraw this money at the wrong time.
4. Put your stock allocation in the Total Stock Market Fund.
5. Put your bond allocation in the Total Bond Market Fun.
6. Make regular investments into their (a) cash account, (b) total stock fund and (c) total bond fund.
7. Sit back, don't read the financial papers for six month.
8. Reallocate in six months if they allocation is off by 5% or more.
Mike