Vanguard VTINX [Target Retirement Income Fund]

[roh8372]

My target retirement 2010 fund recently reached end of life and was exchanged into VTINX (target retirement income fund). Has anyone gone thru this with an older target date fund? If yes, what has your experience been with the income fund?

[David Jay]

We would recommend that you make the effort to evaluate your personal willingness, need and ability to take risk. This is controlled by "asset allocation", link to Wiki here: https://www.bogleheads.org/wiki/Asset_allocation

TR Income has a very safe, conservative asset allocation at 30/70 (stocks/bonds). If you want to be 30/70 then this is a fine fund for you.

Similar funds (but with a wider choice of asset allocations) are the LifeStrategy family of funds. They are available from 80/20 to 20/80. For instance, if you wanted slightly more potential for growth, the LS Conservative fund has a 40/60 AA.

[indexonlyplease]

I would think that you made it to retirement. Now time to live off the income you get from the Vanguard Fund. I believe it it uses the 4% rule. I think that is the goal. If you don't need the imcome then you can change into another Target Fund for when you do need the income.

I would think depending on your age and income sorces will decide your AA going forward.

[David Jay]

... your other post about purchasing Wellesley.

Target Income is a fund-of-funds that gives you complete diversification in a single fund: US stocks, US bonds, International stocks, International bonds and inflation protected TIP bonds.

It can add to the complexity of understanding your total portfolio if you hold it with a bunch of other funds. Do you hold it in a tax-deferred account or in a taxable account?

[tibbitts]

I would think that you made it to retirement. Now time to live off the income you get from the Vanguard Fund. I believe it it uses the 4% rule. I think that is the goal. If you don't need the imcome then you can change into another Target Fund for when you do need the income.

I would think depending on your age and income sorces will decide your AA going forward.

Actually I don't believe the AA of that fund conforms to any 4% studies. You can debate perhaps 2% or 3%, but I believe few would say 4% is in the picture.

[tibbitts]

My target retirement 2010 fund recently reached end of life and was exchanged into VTINX (target retirement income fund). Has anyone gone thru this with an older target date fund? If yes, what has your experience been with the income fund?

There isn't that much difference between what was the 2010 TR Fund at its end-of-life and the TR Income Fund. Please change your post title to reflect Target Retirement Income Fund.

[indexonlyplease]

I would think that you made it to retirement. Now time to live off the income you get from the Vanguard Fund. I believe it it uses the 4% rule. I think that is the goal. If you don't need the imcome then you can change into another Target Fund for when you do need the income.

I would think depending on your age and income sorces will decide your AA going forward.

Actually I don't believe the AA of that fund conforms to any 4% studies. You can debate perhaps 2% or 3%, but I believe few would say 4% is in the picture.

You are correct. I confused that income fund with Vanguard Managed Payout Fund.

[PFInterest]

My target retirement 2010 fund recently reached end of life and was exchanged into VTINX (target retirement income fund). Has anyone gone thru this with an older target date fund? If yes, what has your experience been with the income fund?

your experience will be EXACTLY the same as the previous fund. nothing to do. tracks the index, just at a smidge lower stock allocation. change as needed if this is too conservative (or aggressive) for your needs.

[beardsworth]

roh8372,

If you use that search box at the top of each Bogleheads page, and do searches for "VTINX" and "Vanguard Target Retirement Income," you'll find quite a few previous threads which may be helpful.