Join Early Retirement Today
Reply
 
Thread Tools Display Modes
vanguard target fund
Old 04-21-2005, 05:21 PM   #1
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 352
vanguard target fund

: As I had posted in the introduction section, I am leaving my law firm after 25 years and need to figure out what to do with my 401k. I am considering putting it into the Vanguard 2015 Target fund which is a ten year stretch to actual retirement. The reason I would pick that target is that I hope to not have to touch those funds for at least ten years. I am looking for any opinions you all have on that plan. I have learned tons from the variety of opinions expressed in this forum and look forward to your comments. 8)
windsurf is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: vanguard target fund
Old 04-21-2005, 08:05 PM   #2
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: vanguard target fund

Sorry windsurf but I don't like the Target funds as a whole. If you do invest I would make sure you know exactly what the allocation is (and follow it) and make sure it will be appropriate for your needs.

So you are wondering why I don't the Target retirement funds right? I don't like the one size fits all idea. The link below is an article about Target funds and kind of touches on why I dislike them. My nickels worth.

http://moneycentral.msn.com/content/P112441.asp
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 04:52 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Re: vanguard target fund

The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY!

All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer.

Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004.

Don't confuse serious retirement with male hormonal urges.

I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.
unclemick is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 05:46 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
Re: vanguard target fund

Quote:
The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY!

All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer.

Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004.

Don't confuse serious retirement with male hormonal urges.

I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.
Good post!!! Not sure about the Saints tho
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 06:22 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Re: vanguard target fund

The one great stock and the Saints in the Superbowl!!

36?? yrs and waiting.

Hope springs eternal.
unclemick is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 06:40 AM   #6
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: vanguard target fund

They may work in the sense you will make you money & offer low expenses but I think you can do better in terms of return. Asset allocation for a better return has nothing to do with male hormones. If you don't want to worry about allocation and rebalancing then go with the Target fund.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 06:48 AM   #7
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: vanguard target fund

unclemick -

What happens with the Target funds once you reach the retirement date? Do they continue to allocate your assets or is it up to you?
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 07:54 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
Re: vanguard target fund

Quote:
unclemick -

What happens with the Target funds once you reach the retirement date? *Do they continue to allocate your assets or is it up to you?
They continue to allocate for you. On the Saints.......I hope I can watch the Super Bowl from the big screen in the sky because I will be long gone before they play in it. (hope i'm wrong)
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 08:04 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
Re: vanguard target fund

Louisiana has a football team?

GO PATS!!
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Hope springs eternal, beyond the grave
Old 04-22-2005, 08:13 AM   #10
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
Hope springs eternal, beyond the grave

Quote:
I hope I can watch the Super Bowl from the big screen in the sky because I will be long gone before they play in it. (hope i'm wrong)
On the day after the Red Sox won the World Series, I talked with a woman wearing her grandfather's Red Sox uniform shirt (the kind you buy in a souvenir shop, not the kind you get for being part of the team). As she was the family's second-most rabid fan, he had willed it to her specifically for her to wear when they got to the Series in hopes that they'd win it.

She had tears in her eyes when she told the story. I hope they were for her grandfather, not the Sox...
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 08:46 AM   #11
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: vanguard target fund

So if Vanguard continues to allocate the assets for you then how is that the best way to go? Some people live longer than others and some people require more money than others. One size fits all to me can be too conservative for some based on the reasons above. You could always change your funds I guess.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 09:09 AM   #12
Thinks s/he gets paid by the post
ronin's Avatar
 
Join Date: Oct 2003
Posts: 1,319
Re: vanguard target fund

Not only does one size not fit all, the same type of funds are cut way differently. *Compare the composition of the very conservative Vanguard to a comparable target dated T Rowe Price, for example.
There's some comps here: http://www.marketwatch.com/news/stor...den=&minisite=
__________________
We are, as I have said, one equation short. – Keynes
ronin is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 09:54 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
Re: vanguard target fund

Quote:
Not only does one size not fit all, the same type of funds are cut way differently. *Compare the composition of the very conservative Vanguard to a comparable target dated T Rowe Price, for example.
There's some comps here: http://www.marketwatch.com/news/stor...den=&minisite=
Choices choices.......whats a fool to do?
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 10:05 AM   #14
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: Nomadic in the Rockies
Posts: 2,720
Re: vanguard target fund

When I looked at the Target Retirement series I decided to go for the Lifestrategy series instead. Target Retirment increases bond % approaching and into retirement while LifeStrategy doesn't change allocation (except for the Asset Allocation portion which is a managed fund that says it can go anywhere between 100% stock and 100% bond as the manager sees fit). If I wanted to increase bond allocation over time I'd want more direct control of it.

Aside from my personal allocation wishes I have nothing against Target Retirement, and I like the built-in rebalancing (which Lifestrategy also has).

A couple of the W funds are worth looking into as well. I mix them up, but of Wellington, Windsor and Wellesley there are one or two good managed balanced funds. I think I'm in Wellington, but like I say I confuse these funds badly in casual conversation.

By the way, I have two balanced funds because I don't have Lifestrategy available in my 401(k). I also have some additional international index exposure and some REIT index thrown in for variety and to keep my equity allocation higher than the balanced funds provide.
BigMoneyJim is offline   Reply With Quote
Re: vanguard target fund
Old 04-22-2005, 04:22 PM   #15
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: vanguard target fund

One thing that I don't like about Vanguard's
balanced index funds is that the US stock
allocation is either Total Stock Market or Index 500.
Large Cap Value and Small Cap Value are not
represented enough for my taste and rather
short term outlook (age 70). I prefer Wellington
and Wellesley for their large cap value emphasis.
Look at the recent bubble and burst in Large Growth
and Technology to get my drift.

OTOH, I don't think there will be much difference
in loooong term return between Wellington, STAR,
Target Retirement 2025, LifeStrategy Moderate
Growth or Balanced Index (all 60/40 funds).

They are all great funds and will serve you well.

Cheers,

Charlie
charlie is offline   Reply With Quote
Re: vanguard target fund
Old 04-23-2005, 04:34 AM   #16
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 352
Re: vanguard target fund

Thanks to everyone for the sage and, as I expected, divergent advice. I have got a couple of months to ponder this. The 401k is not all but a substantial chunk of the eggs I have in my basket. :
windsurf is offline   Reply With Quote
Re: vanguard target fund
Old 04-24-2005, 05:11 AM   #17
Dryer sheet wannabe
 
Join Date: Aug 2004
Posts: 13
Re: vanguard target fund

Quote:
The central difficulty with Target Retirement Funds - is the blinding obvious thing - they work AND THAT IS ALL THAT IS NECESSARY!

All the rest is male and hormonal (incurable human condition). 99% of the MSN money and other financial media is worthless for retirement. After 39 years of reading/watching it's still entertainment although I've followed sports slightly longer.

Buying the appropriate Vangard Target Retirement Series is all you have to do. I did the pie chart based on age dealy 1966-2004.

Don't confuse serious retirement with male hormonal urges.

I have my 15% side money for that. And yes, I can wait for football season- old age I guess - go Saints.
Unclemick,

You are 100% correct.

eleighj
eleighj is offline   Reply With Quote
Re: vanguard target fund
Old 04-24-2005, 01:42 PM   #18
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: vanguard target fund

Still not convinced
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: vanguard target fund
Old 04-24-2005, 06:28 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
Re: vanguard target fund

I agree with charlie...the tsm and s&p500 just dont give one a broad enough exposure to asset classes that have done well or that I expect to do better...reit, value, small caps, energy, etc.

I also dont like them at all at these nosebleed valuations. Anyone who has been in the s&p500 or TSM has stood still for the last 5 years (actually lost money per annum).

If stocks were at a more rational pricing, I'd nod in agreement...from here I dont see anything in a large cap index than downside.

I'll take the dividends and keep my conservative slice and dice for the time being... :-/
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: vanguard target fund
Old 04-25-2005, 05:01 AM   #20
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 352
Re: vanguard target fund

TH, what is your "conservative slice and dice" comprised of or is that proprietary? * *8)
windsurf is offline   Reply With Quote
Reply

Tags
vanguard


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Withdrawals From Target Retirement Type Fund yakers FIRE and Money 14 02-17-2007 07:01 PM
Vanguard Precious Metals Fund ash FIRE and Money 13 05-20-2006 10:56 AM
Vanguard Fund Actions REWahoo FIRE and Money 1 04-20-2006 02:36 PM
Vanguard Adding More Target Retirement Funds Lusitan FIRE and Money 23 03-21-2006 06:17 PM
Vanguard Dividend Appreciation Index Fund ats5g FIRE and Money 5 02-01-2006 06:37 PM

» Quick Links

 
All times are GMT -6. The time now is 03:35 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.