Is Vanguard STAR appropriate for someone retired?
Is Vanguard STAR appropriate for someone retired?
I am 67, retired with a defined benefit pension. I would like to take a bit (about $5,000 to start) out of savings and put it in either one or split between 2 Vanguard funds. I am thinking one could be an index and the other managed. Does anyone have any helpful thoughts on the matter? Thank you.
Re: Is Vanguard STAR appropriate for someone retired?
Why not consider the Life Strategy or Target Retirement Funds?
All the Best, |
Joe
Re: Is Vanguard STAR appropriate for someone retired?
Not enough info to give a meaningful answer.
Re: Is Vanguard STAR appropriate for someone retired?
Not enough information to make a precise recommendation, but it would be pretty difficult to go completely wrong with STAR.
Re: Is Vanguard STAR appropriate for someone retired?
I have had a Star fund for about 10 years and have been reasonably satisfied with it. On the other hand I would not buy it now, but might consider either/both Wellington and Life strategy Moderate if I wanted 60/40 stock/bond. Life Strategy gets my Boglehead vote, but Wellington also has a draw.
Edt: I did "try it out" with about $5000 Star in taxable when I first started at V. I converted it to Total Stock Market because I didn't like the capital gains and more dividends, even in the 15% tax bracket. If higher than 25% bracket it might only be good if you are spending that income. Otherwise maybe
Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) ($10,000 to open).
Buying Total Stock Market and balancing it with more bonds in IRAs (buying bonds and selling stocks, not changing total value) or just buying extra CDs or I-Bonds might be an option.
How about just buying $3000 of Total Stock Market instead of $5000 of a stock/bond fund?
That might accomplish the same thing and be simpler. Consider $2000 of your savings to be part of the $5,000.
Edt: I did "try it out" with about $5000 Star in taxable when I first started at V. I converted it to Total Stock Market because I didn't like the capital gains and more dividends, even in the 15% tax bracket. If higher than 25% bracket it might only be good if you are spending that income. Otherwise maybe
Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) ($10,000 to open).
Buying Total Stock Market and balancing it with more bonds in IRAs (buying bonds and selling stocks, not changing total value) or just buying extra CDs or I-Bonds might be an option.
How about just buying $3000 of Total Stock Market instead of $5000 of a stock/bond fund?
That might accomplish the same thing and be simpler. Consider $2000 of your savings to be part of the $5,000.
Last edited by BL on Fri Jan 16, 2015 9:05 am, edited 3 times in total.
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Re: Is Vanguard STAR appropriate for someone retired?
It depends, among other things, on your tax bracket.