Too late to switch funds?????

[Perry]

Hello:
I'm new to the forums.Need some opinions and advice,here is my situation:
Male,63.Retired for two years.SS $850 month.
Only income.Need to withdraw about 16K a year.
Portfolios.Rollover IRA (60Ks)
STCB 42%
STHYX 20.6%
STADX 37.3%

IRA (90Ks)
VWELX 49.9%
PRITX 0.6
MDISX 29.3
JANSX 13.5
JAOSX 6.7.

Regular or taxable(160K)
VFIIX 0.49%
PRASX 2.1
PRITX 9.6
PRFDX 18.7
STADX 11.6
SLAFX 2.5
JAFIX 22.1
JAVLX 7.7

I'm transfering to Vanguard all my assets and I beleive
that I'll use Vanguard's LifeStrategy Conservative Growth Fund..........At my age is it safe enough and also
the withdraw rate.I have no childrens.no wife.......
I'm looking forward to your replies......many thanks.

 

[John Galt]

Hi Perry! You came to the right place, but I guarantee
quite a few reading about your situation will think
that you should not be retired and need to go back to work ASAP Anyway, I think you are in good shape.
Welcome...............

John Galt

 

[Bob_Smith]

Perry, the LifeStrategy Funds have some appeal. Two reasons I don't use them:

1) I prefer to control my own mix, especially the bond portion.

2) I don't like the Asset Allocation Fund which makes up 25% of the portfolio. I don't want some fund manager timing the market with my money.

Vanguard started with a good idea (four different mixes of index funds that would fit most needs) and then they ruined it by cramming that fund into the mix, IMO.

 

[yakers]

Bob_Smith said in part:


2) I don't like the Asset Allocation Fund which makes up 25% of the portfolio. I don't want some fund manager timing the market with my money.

Hey, I like the Vanguard Asset Allocation Fund (VAAPX), I have my Roth, about 10% of my $, in it. I actually like that someone is managing it at a fairly low fee and it has less volatility than the S&P500. I do not own other bonds except for Ibonds but I expect to get an inflation indexed pension. My 401k is in 4 index funds and I DRIP a few dollars each month into stocks. Thats my plan and I expect to retire in 2 or 3 years, I'm 54 now.
Thats my story and I'm sticking to it, unless I come up with a better one.

 

[Jarhead*]

Hello:
             I'm new to the forums.Need some opinions and advice,here is my situation:
              Male,63.Retired for two years.SS $850 month.
Only income.Need to withdraw about 16K a year.
              Portfolios.Rollover IRA (60Ks)

Perry: Welcome to the board.
Your Rollover IRA indicates 60k, did you mean 600k?
Advice would be much different on those two numbers.
Regards, Jarhead

 

[WilliamG]

We use Lifestrategy Growth in our Roths as these are a smaller part of our portfolio and want to be relatively diversified there. Bob, I looked at the Asset Allocation fund versus S&P 500 and not only is AA less volatile, it has out performed on 1, 3, 5 and 10 year periods.
bill

 

[Bob_Smith]

Bob, I looked at the Asset Allocation fund versus S&P 500 and not only is AA less volatile, it has out performed on 1, 3, 5 and 10 year periods.

Bill, the AA fund is a mix of stocks, bonds, and cash. So I wouldn't compare it to the S&P 500. The AA fund has actually under-performed Wellington by quite a bit, but that's probably not a fair comparison either. Nevertheless, I have no faith in past performance. A manager who has been lucky recently, is a manager who is probably due to under-perform, IMO.

But the thing that concerns me the most about the AA fund is the fact that this is a market timing fund - they invest in the three major asset classes (stocks, bonds, and cash) and can hold as much as 100% in any one of those. So one is entirely dependent upon the judgment of the fund's management. I have no faith in anyone's ability to time the market, and I wouldn't want a fund that gives the manager the the ability to make 360 degree swings. I'm not saying it's a bad fund - I'm just saying that out of the hundreds of funds I could buy, this wouldn't be one of them. So it ruins the appeal of the LifeStrategy funds for me.