mphilips wrote:Is it really this simple? Choose one fund and let it ride? I look at at the posts on bogleheads and I am just amazed at the wealth of knowledge available. So I feel that I must be missing something. I recently moved from a mix of higher cost funds into the VTINX fund because I wanted to lessen cost and risk but now I am feeling (due to age) that I might have gone too far. How do you really ascertain your own risk profile? I have filled out several risk questionnaires including the one on Vanguard and it puts me about 40/60. Is there a downside to moving from one retirement fund to another within a period of a few months? I also wonder whether the bond market will really provide adequate income over the long haul.
Everything BL and everyone else said.
Is there a downside to moving from one fund to another? There is not unless it becomes a habit based on constantly undermining a good plan in hopes of finding a better one.
The bond market will not provide adequate income over the long haul. It is not expected to under any conditions looking forward unless the income one takes is small relative to one's wealth. You have to be on the wealthy side of investing or on the frugal side of spending to survive on bonds. That is why people also invest in stocks. In the marginal case annuitizing some of the assets may be necessary to obtain sufficient longevity sure income. Annuities include any existing pensions and Social Security.
If you want to read about risk and asset allocation, Larry Swedroe's books have, I think, the best discussion.
If you can manage the length of it, the best comprehensive discussion of income in retirement is the book and software here:http://www.retirementoptimizer.com/