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Author: TwoCybers Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81591  
Subject: Re: Lifecycle Funds Retirement Accounts Date: 1/18/2008 4:39 PM
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The idea of moving a little at a time vs. moving it all is just another version of market timing. Over long periods of time, the target funds will go up faster than the S&P. In any short period, it is a crap shoot. Frankly right now I would move it -- yes the stock market will go down and with it the S&P. But your LifeCycle fund probably has some foreign stock/bond exposure. So the decreasing value of the dollat will be a gain.

You can and should visit Vanguard.com and look at the composition of the various Vanguard Life Cycle Funds. You will see they a composed of other Vanguard Funds. Myself, I drilled down into the underlying funds to determine both holdings and fees. For Vanguard 2025, see:


The Holdings tab, https://personal.vanguard.com/us/funds/holdings?FundId=0304&FundIntExt=INT

Shows a much more diversified holding than the S&P index.

Even if your retirement date is 2025, there is no "rule" saying you must choose the 2025 -- choose 2035 or 2015 if those more closely match your investment needs.

I suggest you compare the Vanguard funds to T Rowe Price. I found the Vanguard a bit more conservative than my desires. I would assume you can switch from 2035 to 2025 in a few years if you want.

Do some reading at the Vanguard website -- they have lots of good advise and information.

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