Back to Vanguard I go

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Topic Author
thirstyhike
Posts: 2
Joined: Mon Mar 05, 2012 4:00 pm

Back to Vanguard I go

Post by thirstyhike »

This should be an easy one. I'm taking an early retirement from a local municipality with a very secure retirement system. I am 54, and the pension will cover all my basic expenses, I could sit on the porch and enjoy my grandchildren if I wanted to. I will work part time for another private company for a few more years only because I enjoy what I do. I've got approximately $190,000 in my 401(a) invested entirely in T Rowe Price Mid Cap Value with Nationwide adding a charge to manage the program. I want to roll this over into just a few Vanguard funds and let it ride. I could see not withdrawing from this IRA until I am forced to. I know I shouldn't have all my eggs in one fund basket, but I also do not want dozens of funds. I like the idea of index funds, and I'd like to expand my horizons a bit from the basic S&P Index fund. Any thoughts?
Austex1
Posts: 214
Joined: Mon Aug 29, 2011 10:20 pm

Re: Back to Vanguard I go

Post by Austex1 »

Congratulations on your early retirement!

If it were me, and I wanted to keep it super simple, I'd have everything in VG Total Stock Market Index Fund and Vanguard Total International Index Fund and Vanguard Total Bond Market Index Fund.
livesoft
Posts: 86075
Joined: Thu Mar 01, 2007 7:00 pm

Re: Back to Vanguard I go

Post by livesoft »

There are a number of one-fund possibilites at Vanguard:

A Target Retirement fund of your choice
Wellesley
Wellington
Balanced
Life Strategy something or other

Or you can mix up some fund concoction to your liking.
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RadAudit
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Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Back to Vanguard I go

Post by RadAudit »

thirstyhike wrote:I know I shouldn't have all my eggs in one fund basket, but I also do not want dozens of funds. I like the idea of index funds, and I'd like to expand my horizons a bit from the basic S&P Index fund. Any thoughts?
You may want to take some time and read a few of the recommended books on this site. That exercise should enable you to set up an asset allocation that would meet your requirements - or come as close to meeting them as you can get based on your risk tolerance and timeframe. After you get that nailed down, you can probably do what you need to do with three index funds (total [domestic] stock / total international stock / total bond)
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
TimDex
Posts: 962
Joined: Mon Feb 19, 2007 4:27 pm

Re: Back to Vanguard I go

Post by TimDex »

Read some of the basic material. A quick introduction to index investing came be found in the very short books of
Dan Solin. A very key thing to do is figure out what percentage of assets you want in stock and what in bonds.

You may find it very easy to invest using one of the Life Strategy Funds. They are a mix of three index funds (Total US Stock Market, International and Total Bond), and automatically rebalance. They come in four flavors, with different levels of risk.

Tim
"All man's miseries derive from not being able to sit quietly in a room alone. " -- Pascal
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Majormajor78
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Joined: Mon Jan 31, 2011 8:13 pm

Re: Back to Vanguard I go

Post by Majormajor78 »

Somebody had to mention the lazy portfolios: http://www.bogleheads.org/wiki/Lazy_portfolio

By all means, do some reading so you understand why these sample portfolios are set up they way they are how to make adjustments to the bond proportion to match your risk/needs.
"Oh, M. le Comte, it is only a loss of money which I have sustained... nothing worth mentioning, I assure you."
Topic Author
thirstyhike
Posts: 2
Joined: Mon Mar 05, 2012 4:00 pm

Re: Back to Vanguard I go

Post by thirstyhike »

Thanks for all the replies, I like the sound of the Lazy Portfolio, that sounds like my style.
Glad I found this site.
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