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Author: 6415518 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75777  
Subject: Rollover to Vanguard Target Date: 11/23/2003 7:31 PM
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Any thoughts on looking at Vanguard Target Retirement Income Fund(VTINX)as a place to rollover a 403b(TSA)which I now have with an insurance company and want to move because of high fees.I have a seperate defined benefit pension so this TSA is a supplemental voluntary plan initiated in the early 80s. I retired on 7/01/03 and am 66 years old.
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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37966 of 75777
Subject: Re: Rollover to Vanguard Target Date: 11/23/2003 9:00 PM
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I've got a ways to go before retirement but when I looked at the targeted funds they seemed very conservative, which is OK if that is what you are looking for. By conservative I mean that they are lighter in stocks and heaver in bonds than felt comfortable to me which could backfire if interest rates go back up some.

Part of the problem is that they can't do the asset allocation based on your entire situation. For example there may be two people who plan to retire in 2020,

Person one is; single, has their house paid off and plans to retire early at age 55.

Person two is married, had a substantial mortgage on their house and hopes to retire at 67.

These people have extremely different needs and about the only thing that they have in common is that both plan on retiring in 2020.

You can get mich the same results by buying the total stock market index fund and the total bond market index funds.

Greg


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Author: Rijer One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37970 of 75777
Subject: Re: Rollover to Vanguard Target Date: 11/23/2003 10:15 PM
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I've got a ways to go before retirement but when I looked at the targeted funds they seemed very conservative, which is OK if that is what you are looking for. By conservative I mean that they are lighter in stocks and heaver in bonds than felt comfortable to me which could backfire if interest rates go back up some.

You can select a target fund which matches your desired comfort level. If you are retiring about 2020, you could select a 2030 target fund and would have a greater equity position.

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Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37972 of 75777
Subject: Re: Rollover to Vanguard Target Date: 11/24/2003 12:49 AM
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This fund is too conservative for you.

You're just 66, which means you have a good 20-30 years of life left. So you're still a long term investor, and long term investors prefer stocks.

Also, you've already got plenty of fixed income investments, including your social security payments and pension.

I don't know the amount in the 403b vs the capitalized amounts in your pension and SS accounts, so can't make a specific recommendation, but I think you'd want at least 50% stocks in the rollover IRA.

As mentioned, just put part in Vanguard's Total Stock Market fund, and part in their Total Bond Market Fund.

Nick

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