prototype
Recycles dryer sheets
I just turned 58 (ER’ed Jan 2011) and have been basically in couch potato mode (“set it, quick weekly check it, but not obsesses over it”) when it comes to my 401K and Traditional IRA (Current total about $500K). I do not foresee starting to withdraw from these funds for at least 4 years. I have moved what is about $340K into only two vanguard funds in a traditional IRA account (Wellesley ~120K and Wellington ~ 220K) which according the Vanguard site provides about a 55/45 Equity/Bond Mix. I will move the remainder of my 401K (~$160K) in 2 or 3 transfers over to Vanguard between now and when I turn 59.5 years old and then plan to “manage it more actively”. The funds in my 401K or more diversified, but the fees are a bit higher, fund selection much lower (megacorp specific Blackrock funds with no ticker symbols) but all in all have been performing OK and close to my IRA. I really don’t want to spend a lot of time managing my retirement accounts at this point on time. My limited efforts and time I put into asset management is now more focused on managing/monitoring my non retirement fund assets (which are close in total value to my retirement accounts, (not all vanguard.)
Does this seem like a reasonable “couch potato” approach for the next few years (given markets don’t go too crazy)? Or should I start to diversify these two funds to a more specific/granular level even though they are already somewhat diversified (plus have some trade/activity restrictions on how often money can be move out and about. .
Actually I have not seen a significant difference in overall performance over the last 2 years between my Vanguard IRA account with just the two "core" funds and my regular Vanguard account with 8 funds (probably because they are also close to a 55/45 mix). My risk comfort zone is probably conservative/moderate.
I will remain in watch mode on the Fed/interest rate trend for possible AA tweaks to both retirement and non retirement.
Does this seem like a reasonable “couch potato” approach for the next few years (given markets don’t go too crazy)? Or should I start to diversify these two funds to a more specific/granular level even though they are already somewhat diversified (plus have some trade/activity restrictions on how often money can be move out and about. .
Actually I have not seen a significant difference in overall performance over the last 2 years between my Vanguard IRA account with just the two "core" funds and my regular Vanguard account with 8 funds (probably because they are also close to a 55/45 mix). My risk comfort zone is probably conservative/moderate.
I will remain in watch mode on the Fed/interest rate trend for possible AA tweaks to both retirement and non retirement.