Total US or Vanguard 2050?

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bdrolan
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Total US or Vanguard 2050?

Postby bdrolan » Fri Jun 16, 2017 10:10 pm

If I need to add all my info I can, but didn't think I needed to add it for this question

I'm getting ready to open a Roth IRA for myself. We currently have a 3-Fund Portfolio split across my TSP and my spouse's Roth IRA at a 70 US/20 International/10 Bond (TSP G Fund) split.

Should I open my Vanguard Roth with more Total International or US or just start off with Target 2050 until I get enough to open Total International and US individually?

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Fudgie
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Re: Total US or Vanguard 2050?

Postby Fudgie » Fri Jun 16, 2017 11:30 pm

Target 2050. Can't go wrong with that.


Cheers!
"That's entertainment!" - Vlad the Impaler

mega317
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Re: Total US or Vanguard 2050?

Postby mega317 » Fri Jun 16, 2017 11:45 pm

Are you saying you won't have the 3k to buy VTSMX/VGTSX and you want to know what to do until you get there? How about an ETF?

It probably doesn't matter that much but if you already have a 3-fund portfolio split across multiple accounts then a target fund will add a little more complexity to your spreadsheet. For example the 2050 fund has an allocation of 54/36/10. So if you are being precise you would have to sell some international and buy US stocks in another account. If that doesn't move the needle for you, because the amount is small relative to your portfolio or you don't care about the precision, then it doesn't matter what you do right now.

Fishing50
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Re: Total US or Vanguard 2050?

Postby Fishing50 » Sat Jun 17, 2017 1:20 am

33 years invsested, Total US. Stay the Course!

Vanguard Fan 1367
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Re: Total US or Vanguard 2050?

Postby Vanguard Fan 1367 » Sat Jun 17, 2017 6:53 am

.16 Expense ratio for the 2050 isn't very much especially when it doesn't sound like you are ready for the Admiral funds. I like the 2050 idea but you can't go wrong with the other Vanguard options that you listed. That is such a contrast to the 1 percent assets under management fees, load charges, and high expense ratios of the funds at many other places you could be investing.

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davidkw
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Re: Total US or Vanguard 2050?

Postby davidkw » Sat Jun 17, 2017 7:27 am

Go with the Vanguard 2050 Target Retirement Fund. I have the 2030 for my IRA and my Roth.
David | | From Jack Brennan's "Straight Talk on Investing", page 23 "Living below your means is the ultimate financial strategy"

BogleMelon
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Re: Total US or Vanguard 2050?

Postby BogleMelon » Sat Jun 17, 2017 7:43 am

You have first to know what is your desired overall asset allocation. If your desired AA is: 70 US stocks, 20 Intl Stocks and 10 Bonds, then you have to keep it the same after adding up all the accounts (including your new Roth fund).
Please check the Wiki on this topic: https://www.bogleheads.org/wiki/Asset_a ... e_accounts

I personally keep my US stocks at the 401K (since this is the most reasonable fund) while Intl st. and bonds are mostly at my Roth IRA (Vanguard funds). I use new Roth contribution every month to balance my overall asset allocation to keep it at my desired risk level.
Good Luck!
Excuse my English, it is my second language! | | "One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

Helo80
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Re: Total US or Vanguard 2050?

Postby Helo80 » Sat Jun 17, 2017 7:45 am

+1 for Total US Market Index.

2050 is fine for somebody whom literally wants only one fund to dump money into and has no clue how numbers work. In that case vanguard 20XX will treat them right.

But, if you have an AA setup to your liking across TSP/Roth already, you can probably tolerate the total market index for 30 years.

BogleMelon
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Re: Total US or Vanguard 2050?

Postby BogleMelon » Sat Jun 17, 2017 7:47 am

Fudgie wrote:Target 2050. Can't go wrong with that.


Cheers!

Well, technically he can!
Target 2050 has a high risk level. It is a good fund, I am not disputing that of course, but just don't want the OP to get an idea that good funds are risk free. Investing comes with risk, and risk means there is a chance that things go south!
Excuse my English, it is my second language! | | "One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

bdrolan
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Re: Total US or Vanguard 2050?

Postby bdrolan » Sat Jun 17, 2017 7:58 am

Thanks all.

I'm aware of the risk that equities do play and I do like my 70/30/10 AS. 2050 is actually more conservative.

I was mainly asking to have just one find to dump it until I get at least 6k to get the Total US/Intl allocation going....

But...i completely forgot about buying the ETFs. I've never purchased those.

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jhfenton
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Re: Total US or Vanguard 2050?

Postby jhfenton » Sat Jun 17, 2017 9:09 am

I would put it in all in Total International in my new Roth and adjust my allocation in the TSP and spouse's Roth to keep me at my 70/20/10 split. I wouldn't add a second fund in my Roth IRA until I had to, which might be never with the TSP presumably much larger and growing faster.

bdrolan
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Re: Total US or Vanguard 2050?

Postby bdrolan » Sat Jun 17, 2017 9:44 pm

jhfenton wrote:I would put it in all in Total International in my new Roth and adjust my allocation in the TSP and spouse's Roth to keep me at my 70/20/10 split. I wouldn't add a second fund in my Roth IRA until I had to, which might be never with the TSP presumably much larger and growing faster.



Thanks
Currently all 20% of International is in Spouse's IRA and remaining is in TSP. Putting all international would up by International Allocation to about 21%, so not a ton of change.

Any other ideas on it?

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oncorhynchus
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Re: Total US or Vanguard 2050?

Postby oncorhynchus » Sat Jun 17, 2017 10:23 pm

I used the Vanguard 2040 Target Date Fund in my Roth IRA for a couple of years while rearranging and consolidating my accounts and building up a balance. It served its purpose well as I figured out how to implement my 80/20 AA across both Trad & Roth TSP, Roth IRA, and taxable retirement accounts.

If you're really keen on maintaining your AA tightly, use a target date fund; otherwise, I don't think a total-stock-market-only position is inappropriately risky, especially if you offset it with a little bit more G-fund.

o
-- Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. --

bdrolan
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Re: Total US or Vanguard 2050?

Postby bdrolan » Sun Jun 18, 2017 4:14 pm

Thanks. Anyone else?

mega317
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Re: Total US or Vanguard 2050?

Postby mega317 » Sun Jun 18, 2017 11:47 pm

bdrolan wrote:
jhfenton wrote:I would put it in all in Total International in my new Roth and adjust my allocation in the TSP and spouse's Roth to keep me at my 70/20/10 split. I wouldn't add a second fund in my Roth IRA until I had to, which might be never with the TSP presumably much larger and growing faster.



Thanks
Currently all 20% of International is in Spouse's IRA and remaining is in TSP. Putting all international would up by International Allocation to about 21%, so not a ton of change.

Any other ideas on it?


So this is 1% of your portfolio? It doesn't matter what you do. Is there something else behind your question?


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