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I am very new to investing and I am trying to do my homework. I am a 33 yr old physician.. I plan to retire in less than 30 yrs or so.. I paid into a 403b for the hospital where I did my training...

I was given advice to take it out and 'roll it into an IRA'. I understand I can not use a Roth IRA because my salary is above the maximum. I already have an account at Vanguard.. and it does seems like a good idea to move it out of my ex-employers plan.

In terms of the asset allocation of the IRA... why should I.. or should I not plop it into Vanguard TARGET RETIREMENT 2025 or 2035?
It seems simple, safe and sound. But... is it advisable??

Thanks
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>> In terms of the asset allocation of the IRA... why should I.. or should I not plop it into Vanguard TARGET RETIREMENT 2025 or 2035?
It seems simple, safe and sound. But... is it advisable??
<<

For a beginning investor, it's not bad. I prefer to stay away from "lifecycle" funds like these because I know what asset allocations I want to keep and have, after 18 years of investing, accumulated enough to have appropriate positions in several asset classes.

But when you're new to investing, sure, it's a perfectly fine place to put your money. If you'd like to learn more about investing and financial planning, at some point you may want to move your money elsewhere. But for the time being, it certainly gives you diversification with a reasonably age-appropriate asset allocation. You could do a lot worse.

#29 (who parks new 401K contributions into Fidelity's Freedom 2020 fund until he rebalances his core funds once a year)
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Ziggy may be a generally smart guy, but in this case ignore his advice. A target retirement plan is ideal for you. You can continue to accumulate while ignoring your investments and staying away from brokers and financial planners who would love to partake in your money. You'll be a better physician if you spend your time keeping up with the literature rather than trying to learn about investing.

db
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In terms of the asset allocation of the IRA... why should I.. or should I not plop it into Vanguard TARGET RETIREMENT 2025 or 2035?

IMO, you need to ask yourself what percentage of your money do you want invested in bonds? Your age and risk tolerance helps to determine that issue. The percentage you come up with will help you determine which of the Target Retirement funds to invest in. Those with target dates further out in the future have smaller percentages invested in bonds. i.e. TR 2025 will have a much larger percentage invested in bonds than TR 2045. The bond percentage allocations increase in each fund as the years go by.

I mentioned in a previous thread that there's no 'law' that your target retirement fund date must be the date you actually intend to retire:

http://boards.fool.com/Message.asp?mid=22153335&sort=whole#22153495

2old

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