Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Your suggestions for 401K allocations in Vanguard funds
Old 01-28-2009, 07:14 AM   #1
Full time employment: Posting here.
Join Date: Oct 2006
Posts: 690
Your suggestions for 401K allocations in Vanguard funds

My 401K allows contributions in the following Vanguard Funds. The funds I am currently invested in are noted with the percentage of the total.

Vanguard Primecap Fund Adm 18.17%
Vanguard Wellesley Inc Adm 23.13%
Vanguard Explorer Fund Adm 11.05%
Vanguard Small-Cap Index
Vanguard Total Bond Mkt Index 6.61%
Vanguard Wellington Admiral 31.36%
Vanguard Internations Gth Adm
Vanguard Extended Market Index
Vanguard Federal Money Market 0.94%
Vanguard 500 Index
Vanguard Morgan Growth Admiral
Vanguard Equity Income Admiral 8.64%

I am anticipating a job loss within a few months. At age 56 I am more concerned today with preserving what I have, so the knee jerk reaction is to move it all to the Vanguard Federal Money Market. This represents about 40% of my retirement savings, with another 40% in CDs and Ibonds, and another 20% in DW IRA. By the way, her IRA is also in Vanguard invested in some of these same funds.

I would appreciate your thoughts. I do not have enough to voluntarily RE on till SS at 62 with what I have accumulated so far. (no health insurance once I lose my job) In this economy it is extremely doubtful that I will be able to find a job, so please consider the best allocation for what I will call a survival mode.
Tom52 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 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!

Old 01-28-2009, 08:25 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
I think the best place to get free personalized advice on your 401(k) allotments is at the bogleheads site. They love Vanguard funds and they love to do this kind of "pimp my portfolio" stuff:
Bogleheads :: View Forum - Investing - Help with Personal Investments

But do your homework first by reading and following the directions in the "sticky" threads at the top. Good luck!
LOL! is offline   Reply With Quote
Old 01-28-2009, 09:02 AM   #3
Thinks s/he gets paid by the post
growing_older's Avatar
Join Date: Jun 2007
Posts: 2,657
Sorry to hear about the impending job loss, and the rotten market for finding a new one. I may be in a similar situation, though I am a few years younger than you. My contingency plan for survival mode was to move enough funds to cash or equivalent, mostly CDs, that I could be sure I had enough years expenses to get me to 62 and social security. The rest I would leave allocated as before. Its a drastic plan and much more conservative than my usual AA, but I figure if I'm in survival mode and having no success finding employment, then I don't want exposure to additional risk making things worse. I do plan to keep looking for work and if I find any reconsidering the survival asset allocation.
growing_older is offline   Reply With Quote
Old 01-28-2009, 11:12 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
There was a recent thread about 'front-loading' one's 401(k) contributions. I don't know if you wish to consider that or not. I always do that nowadays partly just as a precaution in the event that I retire or lose my job later in the year. Then I have the most tax-deferral possible which is good for me since our assets are split 50:50 between taxable and tax-advantaged.
LOL! is offline   Reply With Quote
Old 01-28-2009, 11:36 AM   #5
Moderator Emeritus
W2R's Avatar
Join Date: Jan 2007
Location: New Orleans
Posts: 45,449
Naturally, nobody but you can determine the asset allocation with which you are the most comfortable.

Personally, if I were in your position I would put some of my portfolio in CD's, which you have done, as well as some in money market, and some in Wellesley. I don't think you can risk having much of anything in equity funds, given what you are saying, though of course your risk tolerance is up to you. I might even consider (cringe) an inflation adjusted immediate annuity to get from now to SS age, since you feel you do not have enough money to get there otherwise and may not be able to get another job. But I would not do that if there were any other solutions.

Have you considered cutting back on your expenses by downsizing, moving to a low cost area, or whatever? That can help, too.
Happily retired since 2009, at age 61.
W2R is offline   Reply With Quote
Old 01-28-2009, 12:34 PM   #6
Full time employment: Posting here.
Join Date: Oct 2006
Posts: 690
I know I am going to move at least half and possibly more of the money into the MM fund. I am just looking for any inputs of which fund(s) in am in might be the most volitile and the first money to be considered to be moved into the MM. I am thinking of leaving the money in the Wellesley and moving the rest to MM. Is the Wellesley the least volitle of my current funds?

Please keep you inputs coming.
Tom52 is offline   Reply With Quote
Old 01-28-2009, 10:26 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
Join Date: Dec 2008
Location: Stuck in the mud somewhere in the NJ swamp
Posts: 7,650
You can find measures of risk at sites like Google, Yahoo, etc. For instance, 1-yr standard deviation:
Vanguard 500 Index VFINX 21.01
Vanguard Explorer Adm VEXRX 27.99
VEXRX is said to be more volatile in this case, as the standard deviation is higher. I'd read much more, and consider any moves very carefully, though.
target2019 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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
Vanguard Index funds vs. Vanguard ETFs Saver FIRE and Money 8 03-22-2008 12:26 PM
72T, 401K, Fidelity and Vanguard. limpid lizard FIRE and Money 9 06-03-2007 10:42 PM
Seeking guidance on 401k rollover to Vanguard, please! Achiever51 FIRE and Money 7 03-15-2007 09:30 AM
Rolling over my 401k to Vanguard WanderALot FIRE and Money 16 12-19-2006 02:07 PM
Vanguard funds wstu32 FIRE and Money 3 02-04-2006 12:54 PM

» Quick Links

All times are GMT -6. The time now is 01:01 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.