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Old 08-19-2008, 04:23 PM
 
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Thinking of diverting some of the 401K allocation from Vanguard LifeStrategy Moderate Growth Fund (VSMGX) to VFINX 500 index -- will not need to withdraw for at least 10 years, maybe 20.

What do you think?
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Old 08-19-2008, 04:47 PM
 
Location: Aloverton
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Quote:
Originally Posted by Lakewooder View Post
Thinking of diverting some of the 401K allocation from Vanguard LifeStrategy Moderate Growth Fund (VSMGX) to VFINX 500 index -- will not need to withdraw for at least 10 years, maybe 20.

What do you think?
I don't know much about VSMGX, but I'm long VFINX myself. I read increasingly that the S&P 500 is now considered about as arbitrary as the Dow. Is VTSMX (their total stock market index) an alternative for you? I do think with your horizon you can afford to be more aggressive with your chioces, and getting out of an asset allocation fund into straight growth makes sense.
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Old 08-19-2008, 06:11 PM
 
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Hard to answer your question without knowing what the rest of your asset allocation looks like.
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Old 08-19-2008, 10:42 PM
 
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Well, if you have to invest in an S&P 500 Index fund, VFINX is the way to go.
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Old 08-19-2008, 11:38 PM
 
Location: Aloverton
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I agree about VFINX as the best option in its specific category. However, these days I'm leaning more toward ETFs for the indexing anchor of my portfolio. I'm long VO (midcap), VTI (total market) and VWO (emerging markets), together comprising about 12% of assets under management that aren't in my wife's 401k (which has good fund options but not what I'd normally go for).
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Old 08-20-2008, 05:08 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
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My entire portfolio is pure 100 percent VFINX.

They don't take much off the top to maintain it.

Gotta be in the game to grow.

They also have an excellent energy fund, but you need 25K to join. And you can't do anything with the stock for like, a year I think. It has great returns...but....if I lost that much money, my wife would kill me.
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Old 08-20-2008, 05:44 PM
 
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My entire portfolio is pure 100 percent VFINX.
VFINX is all large cap US stocks. If this is 100% of the portfolio, it is not where I would put my money in. You will be very undiversified. There has to be small cap, mid cap, and international stock exposure as well. I'd also need bond exposure. Have you checked the target retirement funds of Vanguard? These are fund of funds that have set allocations that change depending on when you expect to retire. The farther away retirement is, the more stocks there are. The allocations become more conservative as you get older. The allocation changes are automatic, you don't have to do anything. Are they offered in your 401K?

Example, the VTHRX VTHRX: Summary for VANGUARD TARGET RETIREMENT 2030 - Yahoo! Finance which is targeted for retirement on 2030. Currently, it has the following allocations:

Vanguard Total Stk Market Idx Fd Inc 68.78%
Vanguard Total Bond Market Index 13.82%
Vanguard European Stock Idx Acc 9.62%
Vanguard Pacific Stk Idx Fd Inc 4.10%
Vanguard Emerg Markets Stk Idx Fd 3.60%
Vanguard Total Stock Market ETF 0.06%
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Old 08-20-2008, 07:24 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
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I'm not planning on retiring for about 30 more years. I've got some time to recover.....if the market goes all screwy. I've checked out the retirement funds before, and plan on moving some cash around to them a little bit later in the game.
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Old 08-21-2008, 10:19 AM
 
Location: Houston, TX
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I think its all large caps. Not a bad place to park a chunk of cash. Since your not putting all your eggs there I'd say go for it. I'm assuming you also have some exposure to small caps and internationals.
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Old 09-04-2008, 08:55 AM
 
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I'm thinking of taking the plunge today. Only downside I see is that I also have quite a bit in energy in other holdings outside the 401K.

It's either going to be VFINX or VPMCX. I'll keep half in VSMGX.
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