Rollover IRA & funds in Vanguard

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margtberg
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Joined: Wed Apr 25, 2018 7:51 pm

Rollover IRA & funds in Vanguard

Post by margtberg » Mon Apr 15, 2019 4:43 pm

I am rolling my gov't IRA into Vanguard. The amount is about 1 million. I want to keep it simple but smart. Not sure about the total US Bond Market Fund. I don't like that it can lose money. I'm used to the G fund that is very safe for the safe part of my portfolio. Any suggestions? Thanks in advance.

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Rollover IRA & funds in Vanguard

Post by lakpr » Mon Apr 15, 2019 4:49 pm

Any reason specific why you want to do this? TSP plans are the platinum standards as far as retirement accounts go. I suggest you keep at least $200k of the $1 million, in the G fund, and roll the rest over to Vanguard if you still want to. There is absolutely no fund in the private world that compares to the G fund, plus TSP allows you to roll in private IRA funds even if you are no longer employed with the govt. That is really a unicorn benefit

Topic Author
margtberg
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Joined: Wed Apr 25, 2018 7:51 pm

Re: Rollover IRA & funds in Vanguard

Post by margtberg » Mon Apr 15, 2019 5:12 pm

I am retired now and wanted to have it all in one place. I like you comment about the G fund. I can rollover less that the total amount and will need to think about that.

billfromct
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Re: Rollover IRA & funds in Vanguard

Post by billfromct » Mon Apr 15, 2019 5:59 pm

You mentioned "the total US Bond Market Fund" and "I don't like it can lose money." I assume you are talking about the Vanguard Total Bond Market Index, VBTLX.

Any stock or bond fund can lose money.

I believe the only Vanguard fund that is "guaranteed" not to lose money is the Vanguard Federal Money Market Fund & that fund has about 15% in "Repurchase Agreements" which I don't know if the value can decrease. This fund currently pays out about 2.35%.

You don't give any of your details like age, assets, etc., but a conservative stock/bond allocation could earn 4%-6% over your lifetime with a possible 10% loss or 10% gain in any given year. The Vanguard Wellesley Fund, which is about 40% stocks/60% bonds and has had a 9.41% annual return over the last 10 years. This may be a good conservative option. I would guess the average return will be 4%-6% over the next 10 years, but of course there are no guarantees

The Vanguard Federal Money Market Fund had a .37% average annual return over the past 10 years.

bill

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BL
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Re: Rollover IRA & funds in Vanguard

Post by BL » Mon Apr 15, 2019 7:10 pm

Since you like conservative investing and hate to lose any money, the G fund sounds like it can't be beat.

The Prime Money Market is not likely to lose money, but is not FDIC guaranteed, and returns about 2.48 % APY currently. It seems to have stalled out lately. The treasury MM is at 2.38% APY, and may be state tax-free, so perhaps comparable and even safer.

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