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I can buy any fund out there, was thinking a target retirement date fund for ease of use, possibly by Vanguard.
Annually contribute around $40,000.
Thoughts?
I like Vanguard Wellington better than target date funds. Wellington has actually beaten the S&P 500 Index over the last 20 years (8.24% for higher cost share class vs. 7.18% for Vanguard's super cheap S&P 500 Institutional Index Fund) with less risk/volatility. It may not do so over the next 20, but its index-fund-like expense ratio of .16% for balances of 50K or more (.25% for lower balances) mean it has a good chance of better than average returns in the future.
Other balanced funds I like:
--Dodge & Cox Balanced
--Oakmark Equity & Income
--Mairs & Power Balanced
--Fidelity Balanced
My mother decided she wanted to invest a little side money in a Vanguard low cost index fund since she read an article by Warren Buffet about low cost funds (she keeps calling them "low index funds"). So I set her up in Vanguard and put her in Wellington.
My mother decided she wanted to invest a little side money in a Vanguard low cost index fund since she read an article by Warren Buffet about low cost funds (she keeps calling them "low index funds"). So I set her up in Vanguard and put her in Wellington.
Well, as you know, Wellington isn't an index fund, but it is very low cost. Very hard to go wrong with it, IMO, assuming you really do have a 30 year time horizon. But for those who must only invest in index funds, Vanguard Balanced Index is a decent choice.
To the OP you really can't go wrong with any of the suggestions. I love Wellington, it's been discussed at length here and is currently 55% of my 401. But I'm 58 and my timeline is a lot shorter than yours is. IMO you really do not have a need for a lot of bond holdings, and certainly not the 35% or so that Wellington holds.
Just go with the 500 Index or the total stock market index for now, as MJ suggested as you move along diversify into small/mid and maybe some international. Internationals have been terrible for the last decade, I would think they are due for a rebound eventually and certainly within your timeline.
small caps when held in enough of an allocation to really have an effect can cut both ways . fidelity small cap growth took a 2.39% hit yesterday . that is like over a 500 point drop in the dow . . small cap value got hit somewhere around 1.50% so volatility can run pretty high once you get away from the s&p 500 .
Well, as you know, Wellington isn't an index fund, but it is very low cost. Very hard to go wrong with it, IMO, assuming you really do have a 30 year time horizon. But for those who must only invest in index funds, Vanguard Balanced Index is a decent choice.
She invested a very small amount on her own (actually with me doing it) and it makes her feel good. Wellington is lower risk and she can have fun looking at it. She doesn't have a long time horizon since she's 89, but I'm a joint owner on her account so it will pass to me. I have a much larger stake in Wellington.
To the OP you really can't go wrong with any of the suggestions. I love Wellington, it's been discussed at length here and is currently 55% of my 401. But I'm 58 and my timeline is a lot shorter than yours is. IMO you really do not have a need for a lot of bond holdings, and certainly not the 35% or so that Wellington holds.
Just go with the 500 Index or the total stock market index for now, as MJ suggested as you move along diversify into small/mid and maybe some international. Internationals have been terrible for the last decade, I would think they are due for a rebound eventually and certainly within your timeline.
i agree , for a long term investor wellington is to bond heavy unless they have a low tolerance for volatility.lots of people use a 50/50 mix of wellington and wellesley as their retirement model .
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