Retirement 2025/2040

[geeman]

I am currently investing $200 a month in the T Rowe Price Retirement 2040 mutual fund. I am thinking about doing the same at Vanguard except I would invest in the Retirement 2025 fund. Does this manke any sense and if not why?

Thanks

[yakers]

There is no perfect answer. The Vanguard funds are fairly conservative. I expect I would use the 2035 for my purposes but I am 54 and have a pension. You have to look at your circumstances and preferred asset allocation. All the funds are decent ones.

[cute fuzzy bunny]

Agreed. I'm surprised at how conservative the longer run vanguard funds are, but then again their main tenet, backed up by historic data, is that all ya need is some tsm or s&p500 and slip slowly into bonds. Foreign is fun but not much needed and everything else is hoo hah.

[maddythebeagle]

I have always invested in index funds, but from what I read, the vanguard actively managed funds are "less evil" than the average active mf.

I would look at expenses and turnover, stocks in the port. and long term perf. I guess I figure this is all too much work and index.

[yakers]

Vanguard does have some good actively managed funds. I am mostly indexed in that my Govt retirement (TSP) system is mostly indexed. But my Roth is in Vanguard Asset Allocation (VAAPX) and I really like this fund, it suits my investment attitude in that whenever I start to figure its time to shift between stocks and bonds I notice they have already just moved in that direction. Now my orientation could be wrong but their investment approach is just what I would do.
There are a good number of indexed funds, managed funds, fund of funds and target funds just pick one or more and keep to a plan and it will probably work. A good fund with low costs and a long time is almost certain to work. Lots of people lose lots of money on high costs and getting in and out at the wrong times.

[geeman]

So are you saying that the Vanguard Asset Allocation fund may be a better choice than the 2025 fund?

[yakers]

Quote:

Originally Posted by geeman So are you saying that the Vanguard Asset Allocation fund may be a better choice than the 2025 fund?*

No, I am saying that it is a better fund for me. I feel comfortable with it and it fits into my other financial elements. I would recommend it for a lot of folks as it has decent returns a less volitility than the S&P500 but I have found a number of interesting funds from Vanguard and other places (Fidelity, Dodge & Cox) but I started with VAAPX and it worked and I see no reason to get rid of it now.

My wife will be retiring next year and I expect to roll her 403b funds into a Vanguard 2025 or 2035 fund as I think it would work well enough with her partially COLAd pension, so she needs less bonds IMHO. But I will keep out Roths in VAAPX. I like all my holdings now except I am late to learning about REITs and I want to have some except I am not willing to buy them now. Oh, I also have a few ibonds because of inflation concerns.

Long answer to a simple question. Just saying I found a fund I personally really like (like some like Windsor of Wellsley) but I am not saying it is for everyone.

[geeman]

Does anyone know much about the Dodge & Cox Income fund? DODIX

[ats5g]

DODIX is more or less and intermediate term bond fund, comparable to Vanguard's Vanguard Total Bond Market Index Fund [VBMFX].

DODIX holds Treasuries, Corporates, and Mortgage bonds. Its expense ratio is 0.44%, which is quite good.

- Alec

[geeman]

Would this fund be good for a longterm invester. I'm 22 years old and would plan to DCA it over the next 20/25 years.

[preben]

geeman; you probably need to study this subject a bit more before deciding on a specific fund.
But with your time horizon it does not make sense not to get exposure to equity also. Dodge and Cox have a good balanced fund DODBX (meaning holds both equities and bonds) as does Vanguard (VBINX) and others.
Cheers!

[REWahoo]

Quote:

Originally Posted by ben geeman; you probably need to study this subject a bit more before deciding on a specific fund. But with your time horizon it does not make sense not to get exposure to equity also. Dodge and Cox have a good balanced fund DODBX (meaning holds both equities and bonds) as does Vanguard (VBINX) and others. Cheers!

D&C Balanced has been one of my core holdings for years and has performed very well. Unfortunately for geeman, it is closed to new investors.

REW

[geeman]

Yeah, I was looking at the D&C balanced fund, too bad it's closed. I wonder if Vanguard (VBINX) would treat me well over the next 30 years.

I do also have:

T Rowe Price:
Mid-Cap Value
New Asia
Retirement 2040
Real Estate

Vanguard (Roth IRA):
Vanguard 500 Index Fund Investor Shares