Vanguard funds in retirement

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
bpkasl
Posts: 8
Joined: Fri Jul 31, 2020 6:55 am

Vanguard funds in retirement

Post by bpkasl »

Trying to assemble a portfolio of Vanguard funds starting in 2021 for our retirement when we will both be 65. So far have used Vangaurd indexing for decades but now will be looking at preserving what we have through dividends, and still intl exposure, bonds, etc.
So many to choose from, etf vs fund? Total stock vs total world? Total intl vs intl growth? total bond vs world bond, div appreciation vig? I do like dividend growth vdigx as a good holding and also researched vfstx short term inv bonds, vwehx high yield corp bonds and vicsx intermediate term bonds but maybe a single bond fund more efficient.
Any advise appreciated as we start our next phase in life
User avatar
Brianmcg321
Posts: 976
Joined: Mon Jul 15, 2019 8:23 am

Re: Vanguard funds in retirement

Post by Brianmcg321 »

Vanguard life strategy funds would be right up your ally.

Decide what asset allocation you are comfortable with and just have one fund. Simple is best.

https://investor.vanguard.com/mutual-fu ... trategy/#/
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
retiredjg
Posts: 41866
Joined: Thu Jan 10, 2008 12:56 pm

Re: Vanguard funds in retirement

Post by retiredjg »

Without some other definite thing in mind, I recommend something like total stock, total international, and total bond (the 3 fund portfolio). There are many good substitutes and building blocks for these funds.

If you want help in transitioning from what you have, you'll need to post your financial picture. See the link at the bottom of this message for how to do that. The closer you follow the format, the easier it is to help you. :happy
BrooklynInvest
Posts: 271
Joined: Sun Jul 28, 2013 9:23 am

Re: Vanguard funds in retirement

Post by BrooklynInvest »

Brianmcg321 wrote: Tue Sep 15, 2020 11:33 am Vanguard life strategy funds would be right up your ally.
This. Affordable and appropriately diversified.
pkcrafter
Posts: 14321
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: Vanguard funds in retirement

Post by pkcrafter »

bpkasl, in order to get more useful feedback, you should post your information according to this:

viewtopic.php?f=1&t=6212

If you don't know which funds you want to use, we can help with that, but we do need your information first.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
mindboggling
Posts: 453
Joined: Sat Sep 06, 2014 6:35 pm
Location: Upstate NY

Re: Vanguard funds in retirement

Post by mindboggling »

I use LifeStrategy Income in my Trad. IRA, and LifeStrategy Growth in my Roth IRA. Someday I might break them up into their components, but for now I love the simplicity. And they re-balance for me, too! I'm 67 and retired.
In broken mathematics, We estimate our prize, --Emily Dickinson
jimkinny
Posts: 1435
Joined: Sun Mar 14, 2010 1:51 pm

Re: Vanguard funds in retirement

Post by jimkinny »

This is a very good place to start. It is a post and thread that has become very long about the Three Fund Portfolio. You could buy the book. Taylor wrote the book 1-2 years ago. I am guessing it is called the Boglehead Guide to the three fund portfolio. I would imagine the book would be easier to read but maybe not. You also might find the other Boglehead Guide books informative.

viewtopic.php?f=10&t=88005
John Z
Posts: 436
Joined: Sun Nov 14, 2010 5:42 pm

Re: Vanguard funds in retirement

Post by John Z »

Bacardi
Posts: 10
Joined: Fri Feb 02, 2018 9:16 am

Re: Vanguard funds in retirement

Post by Bacardi »

I'm in a similar boat, (nearing retirement) but I'm looking for one single fund for a taxable account (currently in the 22% tax bracket and will be once retired).
I was looking at the Tax-Managed Balanced but as the Wiki notes "However, it isn't really suitable for a single-fund portfolio because it lacks international stocks"
Is there a one fund solution or must it be at least a two fund?
In a few years DW will need to self manage this account and we need to keep it a simple as possible.
BogleDan
Posts: 27
Joined: Sun Jun 03, 2018 5:49 pm

Re: Vanguard funds in retirement

Post by BogleDan »

You have no retirement accounts?
A single fund is a great idea for a taxable account, and a tax managed fund is a great choice for one. Or something like VTI that is going to have very low turnover (which matters in a taxable account).

Get your bond exposure and your international exposure in your retirement accounts (401k, IRA, Roth IRA).

Edit: If you REALLY insist on having "one fund" that gives you everything in a taxable account, you can choose a "target date fund" (e.g., VTTHX) that includes all you need and will auto-balance. Or send money to a place like betterment or wealthfront, which will also cover everything and autobalance.
dbr
Posts: 33842
Joined: Sun Mar 04, 2007 9:50 am

Re: Vanguard funds in retirement

Post by dbr »

bpkasl wrote: Tue Sep 15, 2020 11:29 am Trying to assemble a portfolio of Vanguard funds starting in 2021 for our retirement when we will both be 65. So far have used Vangaurd indexing for decades but now will be looking at preserving what we have through dividends, and still intl exposure, bonds, etc.
So many to choose from, etf vs fund? Total stock vs total world? Total intl vs intl growth? total bond vs world bond, div appreciation vig? I do like dividend growth vdigx as a good holding and also researched vfstx short term inv bonds, vwehx high yield corp bonds and vicsx intermediate term bonds but maybe a single bond fund more efficient.
Any advise appreciated as we start our next phase in life
I think you are making this too hard by imagining that many of those choices amount to differences when they don't. I would especially not get side-tracked regarding dividends, high yield bonds, etc. Payouts from some fund or another are not related to usefulness in a retirement portfolio because payout are not predictive of returns and returns (and the variation of returns from year to year) compared to withdrawals dictate the success of your portfolio plan, meaning not running out of money too soon or ending up with some amount of money you want to have when you die.

You might consider going to the getting started part of the Wiki for some systematic discussion: https://www.bogleheads.org/wiki/Getting_started

I would also suggest going to the Three Fund Porfolio idea which is probably sufficient all by itself: https://www.bogleheads.org/wiki/Three-fund_portfolio

It is probably wise to hold some international stocks but exactly how much does not matter.

Whether you use funds of ETF share classes of the same funds is a matter of convenience and preference depending on where you hold your assets and not an important decision.

Exactly what bonds to hold is a topic of 90% discussion and 10% actual importance, or less.
sycamore
Posts: 1203
Joined: Tue May 08, 2018 12:06 pm

Re: Vanguard funds in retirement

Post by sycamore »

Bacardi wrote: Tue Sep 15, 2020 1:43 pm I'm in a similar boat, (nearing retirement) but I'm looking for one single fund for a taxable account (currently in the 22% tax bracket and will be once retired).
I was looking at the Tax-Managed Balanced but as the Wiki notes "However, it isn't really suitable for a single-fund portfolio because it lacks international stocks"
Is there a one fund solution or must it be at least a two fund?
In a few years DW will need to self manage this account and we need to keep it a simple as possible.
Bacardi (and OP):

You'll get better answers to your questions if you provide the necessary details about your situation. Right now, we can only guess at what might work. Consider... if your pension and Social Security benefits will cover all of your retirement expenses, then a one fund solution might work just fine (and it could be 100% stocks!). Or maybe half your expenses are covered by pension/SS, and rest needs to come from your portfolio. And of course there's your risk tolerance. The details matter.
User avatar
Brianmcg321
Posts: 976
Joined: Mon Jul 15, 2019 8:23 am

Re: Vanguard funds in retirement

Post by Brianmcg321 »

mindboggling wrote: Tue Sep 15, 2020 12:59 pm I use LifeStrategy Income in my Trad. IRA, and LifeStrategy Growth in my Roth IRA. Someday I might break them up into their components, but for now I love the simplicity. And they re-balance for me, too! I'm 67 and retired.
That's a good plan. I was going to do something similar when I retire (I'm 47 now). I just want one fund in each of my accounts. Something like a life strategy conservative or moderate growth in my traditional, and just VTSAX in my Roth.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
ReadingBA
Posts: 2
Joined: Mon Aug 03, 2020 8:51 am

Re: Vanguard funds in retirement

Post by ReadingBA »

I have found it useful to consider the 'bucket' approach to our retirement funds. Bucket 1 is money needed to cover immediate cash flow needs for next 18 months 2 years usually invested in CDs or other safe investments; Bucket 2 is money needed in 18 months to 3 years; Bucket 3 is longer term investments focused on stocks and intermediate bonds. There are a number of articles on this concept at Morningstar.com, along with sample portfolios for fund allocations for different types of investors using Vanguard and Fidelity funds. You should also consider your comfort level for risk and whether you have sources of income such as a pension, and what percentage of your expenses it covers. :happy
User avatar
abuss368
Posts: 21504
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Vanguard funds in retirement

Post by abuss368 »

bpkasl wrote: Tue Sep 15, 2020 11:29 am Trying to assemble a portfolio of Vanguard funds starting in 2021 for our retirement when we will both be 65. So far have used Vangaurd indexing for decades but now will be looking at preserving what we have through dividends, and still intl exposure, bonds, etc.
So many to choose from, etf vs fund? Total stock vs total world? Total intl vs intl growth? total bond vs world bond, div appreciation vig? I do like dividend growth vdigx as a good holding and also researched vfstx short term inv bonds, vwehx high yield corp bonds and vicsx intermediate term bonds but maybe a single bond fund more efficient.
Any advise appreciated as we start our next phase in life
Have you considered a Target or Lifestrategy fund?
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
goingup
Posts: 3906
Joined: Tue Jan 26, 2010 1:02 pm

Re: Vanguard funds in retirement

Post by goingup »

bpkasl wrote: Tue Sep 15, 2020 11:29 am Trying to assemble a portfolio of Vanguard funds starting in 2021 for our retirement when we will both be 65. So far have used Vangaurd indexing for decades but now will be looking at preserving what we have through dividends, and still intl exposure, bonds, etc.
We plan to hold the same Vanguard funds for the duration. No difference between pre-retirement and retirement. I will say that I've added a couple more bond funds in the last year.

You'll want to post a little more info to get better responses. What is your desired asset allocation, ie 60/40, 50/50? Why do think it's necessary to change funds? Are there taxable gains in any of your funds?
Post Reply