Hi, My wife's company is starting a 401 K and I am unsure what Vanguard funds We should use. She is 54 years old. She has an IRA from a previous employer that We transferred to the Wellington Fund. We would like to put enough money in the regular 401K to take advantage of the company match probably 3% on 6% income also We would like to use the Roth 401k for the rest of the money that We are going to contribute. We hopefully won't be needing the Roth money for maybe 15 or 20 years possibly longer. I was thinking the three fund portfolio for the regular 401K and an equity fund for the Roth. Any ideas would be greatly appreciated.
dugb
Wife's Retirement Portfolio
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- Posts: 6393
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Re: Wife's Retirement Portfolio
Welcome to forum
Asking portfolio question
http://www.bogleheads.org/forum/viewtopic.php?t=6212
Roth vs traditional
http://www.bogleheads.org/wiki/Traditional_versus_Roth
John
Asking portfolio question
http://www.bogleheads.org/forum/viewtopic.php?t=6212
Roth vs traditional
http://www.bogleheads.org/wiki/Traditional_versus_Roth
John
- sometimesinvestor
- Posts: 1271
- Joined: Wed May 13, 2009 6:54 am
Re: Wife's Retirement Portfolio
What funds are available? Other info also needed
Re: Wife's Retirement Portfolio
The fund is in the process of being setup so at this time any Vanguard fund could be chosen for the plan. We are looking to have about 15 funds.Since My wife is helping to set this plan up any recommendations for funds that are made here could be chosen if it was decided that they would be of some benefit to the plan participants. What other information should I provide?
dugb
dugb
Re: Wife's Retirement Portfolio
These would be great:
http://www.bogleheads.org/wiki/3-fund_portfolio
Vanguard Total Stock Market Index Fund (VTSMX)
Vanguard Total International Stock Index Fund (VGTSX)
Vanguard Total Bond Market Fund (VBMFX)
plus either Target Retirement or the 4 Life Strategy funds.
http://www.bogleheads.org/wiki/3-fund_portfolio
Vanguard Total Stock Market Index Fund (VTSMX)
Vanguard Total International Stock Index Fund (VGTSX)
Vanguard Total Bond Market Fund (VBMFX)
plus either Target Retirement or the 4 Life Strategy funds.
Re: Wife's Retirement Portfolio
Vanguard target date retirement funds are a very good option for your wife's 401K. Keep in mind you shouldn't choose the fund based only on your projected retirement date, but also on your risk tolerance. The higher the date, the more aggressive is the initial allocation and the farther away is the 'glide path' to a more conservative one. The all in one approach will spare you from having to rebalance your portfolio.
For your Roth IRA, anytime you don't plan to use the money anytime soon, you could go with another flavor of the Vanguard all-in-one funds, which are the LifeStrategy funds. In these funds there is no 'glide path' and the allocation remains constant. For a 20 years time horizon, you may be interested in the growth fund VASGX.
For your Roth IRA, anytime you don't plan to use the money anytime soon, you could go with another flavor of the Vanguard all-in-one funds, which are the LifeStrategy funds. In these funds there is no 'glide path' and the allocation remains constant. For a 20 years time horizon, you may be interested in the growth fund VASGX.