Wife's Retirement Portfolio

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Topic Author
dugb
Posts: 4
Joined: Tue Mar 11, 2014 11:39 am

Wife's Retirement Portfolio

Post by dugb »

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
Johm221122
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Joined: Fri May 13, 2011 6:27 pm

Re: Wife's Retirement Portfolio

Post by Johm221122 »

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sometimesinvestor
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Joined: Wed May 13, 2009 6:54 am

Re: Wife's Retirement Portfolio

Post by sometimesinvestor »

What funds are available? Other info also needed
Topic Author
dugb
Posts: 4
Joined: Tue Mar 11, 2014 11:39 am

Re: Wife's Retirement Portfolio

Post by dugb »

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
User avatar
BL
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Joined: Sun Mar 01, 2009 1:28 pm

Re: Wife's Retirement Portfolio

Post by BL »

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.
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TX_TURTLE
Posts: 198
Joined: Sat Oct 05, 2013 10:37 pm
Location: Texas

Re: Wife's Retirement Portfolio

Post by TX_TURTLE »

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.
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