TR 2025 or STAR

[elroy]

Ok. I'm a little uncomfortable but think I made a decision between good investmet choice and a good investment choice. I just opened a Roth IRA with Vanguard and contributed $4000 for 2005 and $1000 for 2006. It came down to TR2025 or STAR funds. I picked STAR. Guess I was going for as much diversity as I could with the limited amount of investment $$'s. Did I do good?

 

[Dawg52]

Depends on your age. If you are in your early 20's one might argue that you should be more aggressive. But that is a good fund and Vanguard is hard to beat.

 

[yakers]

Both funds are good. If you are young you might want to be more aggressive then either of those. My wife is retiring in a few months and I am recommending she transfer her 403b to the VG 2015 Fund. We would not pick the Star Fund as we already have our Roths in the VG Asset Allocation (VAAPX) Fund.
Picking a particular fund should include some understanding of your overall portfolio including real estate, pensions/SS, stocks, bonds & other assets. But on its own merits the Star Fund is pretty good or at least a good place to accumulate money until you might work out a different choice or asset allocation.

 

[elroy]

Thanks, I was sort of sparse with info. Right now I'm 43 with my only retirement investments in a 401K plan. They consist of the following:

~30% S&P 500
~20% international growth
~20% small cap vaule
~30% bond (6.7yr maturity)

These are the best choices in my plan. Currently have about $200,000.

I own a home, no debts, no mortgage. Just starting to get agressive with my retirement planing.

Elroy...

 

[ats5g]

Hi Elroy,

Both funds are roughly 60% stocks 40% bonds, with 10-13% international stocks. The only real differences are that (1) TR uses nothing by index funds and STAR uses actively managed funds and (2) STAR has more of a value tilt through Windsor and Windsor II.

- Alec