Target Retirement vs Life Strategy Income

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nickfrank
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Joined: Tue Feb 23, 2010 1:39 pm

Target Retirement vs Life Strategy Income

Post by nickfrank »

We are trying to simplify our portfolio so my wife will not have to manage our asset allocation after I pass. Either choice will work but I'm concerned about the lack of Infl. Protection in the LFI fund. Our Vang. advisor said the stock portion will be enough for that. Our AA in 30/70 Stk/Bnd.

What say you?

Thanks,
Nick
asif408
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Re: TARGET RET. VS LFE STRAT INCOME

Post by asif408 »

Hi Nick,

It looks like the Target Retirement Income Fund might be a good fit for you: https://personal.vanguard.com/us/funds/ ... =INT#tab=2. It's a 30/70 stock/bond allocation, and approximately 1/4 of the bond portion is in TIPS.
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Mel Lindauer
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Re: Target Retirement vs Life Strategy Income

Post by Mel Lindauer »

My choice would be the Target Retirement Income Fund because it matches your desired asset allocation and it provides the inflation protection you mentioned.
Best Regards - Mel | | Semper Fi
bcjb
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Re: Target Retirement vs Life Strategy Income

Post by bcjb »

Another vote for Target Retirement Income. LifeStrategy Income doesn't have TIPS and its asset allocation is too conservative for you: 20/80 stocks/bonds.
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joe8d
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Re: Target Retirement vs Life Strategy Income

Post by joe8d »

nickfrank wrote:We are trying to simplify our portfolio so my wife will not have to manage our asset allocation after I pass. Either choice will work but I'm concerned about the lack of Infl. Protection in the LFI fund. Our Vang. advisor said the stock portion will be enough for that. Our AA in 30/70 Stk/Bnd.

What say you?

Thanks,
Nick
The lowest I would go on LS funds is the 40/60 Conservative Growth.To me, the extra 10% stock exposure is a better Inflation protector than the negative yielding ST Tips in the TR Income fund.
All the Best, | Joe
KyleAAA
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Re: Target Retirement vs Life Strategy Income

Post by KyleAAA »

At 30/70, the Target Retirement income fund is your only real option. If you're comfortable going 40/60, the Life Strategy conservative growth fund would be a better choice IMO. TIPS are cool and all, but your Vanguard advisor is right that a 40% allocation to equities would probably provide decent long-term inflation protection.
BigJohn
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Re: Target Retirement vs Life Strategy Income

Post by BigJohn »

Here's a thread that I think will have useful information to compare these two alternatives.

http://www.bogleheads.org/forum/viewtop ... 1&t=141447
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Munir
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Re: Target Retirement vs Life Strategy Income

Post by Munir »

joe8d wrote:
nickfrank wrote:We are trying to simplify our portfolio so my wife will not have to manage our asset allocation after I pass. Either choice will work but I'm concerned about the lack of Infl. Protection in the LFI fund. Our Vang. advisor said the stock portion will be enough for that. Our AA in 30/70 Stk/Bnd.

What say you?

Thanks,
Nick
The lowest I would go on LS funds is the 40/60 Conservative Growth.To me, the extra 10% stock exposure is a better Inflation protector than the negative yielding ST Tips in the TR Income fund.
+1
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