Maturing out of Target 2015 fund

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poppycorn
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Maturing out of Target 2015 fund

Post by poppycorn » Mon Oct 15, 2018 8:52 am

I plan to convert some IRA funds to Roth IRA this calendar year. My IRA dollars are held in my Target Retirement 2015 fund but I would like to place them in a new equally conservative bond fund in the transition. How do I choose the "right " fund? Is there an all in one type Vanguard bond fund?

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vineviz
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Re: Maturing out of Target 2015 fund

Post by vineviz » Mon Oct 15, 2018 8:57 am

poppycorn wrote:
Mon Oct 15, 2018 8:52 am
I plan to convert some IRA funds to Roth IRA this calendar year. My IRA dollars are held in my Target Retirement 2015 fund but I would like to place them in a new equally conservative bond fund in the transition. How do I choose the "right " fund? Is there an all in one type Vanguard bond fund?
Why not keep them in Target Retirement 2015 fund until you make the conversion?

It's not clear to me what you're trying to achieve by looking for a new "all in one type" fund.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

retiredjg
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Re: Maturing out of Target 2015 fund

Post by retiredjg » Mon Oct 15, 2018 9:00 am

There are plenty of bond funds available, but I don't know of any bond funds that are "equally conservative" to a fund that has both stocks and bonds. All will be more conservative than your target fund except for junk bonds which is almost certainly not what you want.

If you want a fund with both stocks and bonds that is more conservative than what you currently have, the Target Income fund has 30% stocks and the LifeStrategy Income fund has 20% stocks.

RadAudit
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Re: Maturing out of Target 2015 fund

Post by RadAudit » Mon Oct 15, 2018 4:32 pm

IIRC, right now Target Retirement 2015 is ~ 60% in bonds. I believe LifeStrategy Conservative Growth is also at 60% bonds. Might want to check the Vanguard website on my recollections before you start throwing money at that idea.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

asset_chaos
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Re: Maturing out of Target 2015 fund

Post by asset_chaos » Mon Oct 15, 2018 7:22 pm

I thought that when target retirement <date> funds hit their retirement <date> that they all essentially became the same as the target retirement income fund VTINX. Perhaps VTINX is the all-in-one fund you seek, and perhaps it's what you've already got.
Regards, | | Guy

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Index Fan
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Re: Maturing out of Target 2015 fund

Post by Index Fan » Mon Oct 15, 2018 7:24 pm

If I remember correctly, TR 2015 is on target to become TR Income (asset allocation wise) by 2022.
"Optimum est pati quod emendare non possis." | -Seneca

rkhusky
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Re: Maturing out of Target 2015 fund

Post by rkhusky » Mon Oct 15, 2018 7:27 pm

Actually, the TR funds transition to TR Income 7 years after their target date.

MotoTrojan
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Re: Maturing out of Target 2015 fund

Post by MotoTrojan » Mon Oct 15, 2018 7:28 pm

poppycorn wrote:
Mon Oct 15, 2018 8:52 am
I plan to convert some IRA funds to Roth IRA this calendar year. My IRA dollars are held in my Target Retirement 2015 fund but I would like to place them in a new equally conservative bond fund in the transition. How do I choose the "right " fund? Is there an all in one type Vanguard bond fund?
No need to pull or move the funds during conversion.

asset_chaos
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Re: Maturing out of Target 2015 fund

Post by asset_chaos » Tue Oct 16, 2018 2:57 am

Thank you Index Fan and rkhusky for supplying the precise path that gets target retirement funds to target retirement income.
Regards, | | Guy

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