VFFVX
VANGUARD TARGET RETIREMENT 2055 FUND INVESTOR SHARES
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Any reason to not go all in VOO/SPY for retirement?
Looking to expand my Roth IRA and I want to make sure it makes sense to add the ETFs I am considering.
What can cause a target-year retirement fund to plummet overnight?
What can cause a Retirement Fund to damn-near crash overnight?
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Thank you! I saw that 3.05% money market fund return since inception, and in comparison with literally all the other options, it looks like an awful place to park money! Would you suggest that I move from money market into the 2055 target-date fund (VFFVX)? It's at 10.77% since inception.
I appreciate the reality check and your insight! You really helped clarify about VFFVX and I will definitely lean into it. Long term is my goal and I'll try and keep it simple. Thanks again!
The 2055 target-date fund (VFFVX) is essentially a diversified version of what you are trying to do manually, so it is hard to beat in terms of simplicity and rebalancing efficiency. Adding mid-cap funds can boost returns, but it will also increase volatility and partially overlap with your total market fund. If you want to “optimize,” you might slightly tilt toward VTSAX and maintain some international exposure, but don’t complicate what is already a solid long-term strategy.
Target Date Funds (TDFs) like VFFVX are designed to automatically rebalance and become more conservative as you approach retirement. They typically hold a mix of stocks and bonds that adjust over time. This year's performance likely reflects smart diversification and potentially better asset allocation compared to pure S&P500 funds during market volatility.
Hi everyone. I am new to finances and I have been trying to diversify by Roth IRA portfolio. I recently purchased $500 in VGT but this is what I have so far. What else should I invest in to diversify my portfolio? I’m also looking into VOO, OKLO, QQQ at some point. VFFVX VANGUARD TARGET RETIREMENT 2055 INVESTOR $13,914.93 VFIAX VANGUARD 500 INDEX ADMIRAL $8,419.39 VTSAX VANGUARD TOTAL STOCK MARKET INDEX ADMIRAL $8,682.77
I prefer VFFVX for a Roth ira.
VFFVX is an excellent choice. If you want to continue not knowing much about investing, just keep shoving money into it for another couple of decades and you'll be well set.
I'm single, mid 30s. I have a 403b with TIAA from my employer. I contribute 5%. Company contributes 10% annually of my salary (not a match). My investments were automatically allocated to VFFVX when the 403b opened. I’m very new to learning about investing and realized I don't know much about my retirement funds. My investments total is $29,275. VFFVX is 86% Equities, 10% Fixed Income, 4% Cash/Money Market Personal rate of return: YTD +5.8% (cumulative), 1 Year +12.4%, 3 Year +12.7% Is this performing average to above average? Should I be re-allocating and selecting my own funds? Just leave as is? Thank you!
* How old are you? What country do you live in? **30, USA** * Are you employed/making income? How much? **Yes, about $73,000** * What are your objectives with this money? (Buy a house? Retirement savings?) **Buy a house** * What is your time horizon? Do you need this money next month? Next 20yrs? **Two years** * What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?) **I'm at about a 7/10 on the risk tolerance scale** * What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?) **$21,131.56 in VFIAX. $3020.60 in VUSXX. $16,490.64 in VFFVX.** * Any big debts (include interest rate) or expenses? **$17,000 car debt at 1.99%.** I just want to know what is the best Vanguard fund to invest in right now? I am receiving $43,000 soon and was thinking of putting $5k into Vanguard Cash Plus, paying off $2k in credit card bills, and the rest will go into some kind of fund like VUSXX.
\> Target funds are always more conservative than S&P funds Yes, the follow asset allocation guidelines, generally recognized as ideal for a given target age date (for 2055, this is likely 10% treasuries/bonds/target). The allocation also chooses to include international exposure in case the US S&P 500 underperforms \> if OP were 60 ....At 32, I’d say put in the S&P and forget about it. This is contradictory advice; if OP has to check in or make changes at 60, then this is not "forget about it", it is "think about it very much as your life changes, your risk profile changes, consider paying much higher fees to an advisor at some point" \> always cost more in fees Choosing vanguard because of mutual ownership reducing fees VFFVX | Vanguard Target Retirement 2055 Fund | .08% expense ratio VFIAX | Vanguard 500 Index Fund Admiral Shares | .04% expense ratio
It’s funny how during a 15 year bull market every investor on reddit chants “buy when there is blood in the streets”, “buy the dip” etc. How many times have you seen redditors saying that they wish they were around to invest in the 2008 crash. People who made money in 2008 had to take risk and have faith in a system that looked like it was failing. This is a good time for investors to re-think their asset allocation (think about adding international stocks and bonds). VFFVX is down less than 4% YTD. The S&P 500 is still up 5% from last April…
I mean yeah that’s common sense. Even retirement funds 30 years out shouldn’t be taking a 20% hit that’s just not based on reality. I’m looking at VFFVX (2055) and it’s down less than 4% YTD. Unless you are gambling there is no way your retirement fund is getting hit this hard. My personal 401k is 93% invested in stocks and I’m only down 5% on the year. People here need to stop with the melodrama.
Half of VFFVX is in total stock market index fund, which is down for the year similarly to SPY. The other half is in international stocks and bonds, which are either up or flat YTD.
I liquidated some retirement accounts in January when SPY was ~580 and VFFVX was 55.20. Now SPY is ~560 and VFFVX is 55.10 - why only a 0.10 change?
Good job! Fidelity is just as good as Vanguard. Even with the current situation I’m still more confident in U.S. stocks long term so I’m still putting much more in VOO, but VT is a good ETF as well. I would look at a mutual fund and decide if that’s right for you. I’ve got VFFVX which is a 2055 retirement fund. You may be younger in which case you would pick a later year. As it gets close to the retirement year it starts getting more conservative and buying more bonds than stocks from my understanding. What I really like about it though is you can buy as much as you want regardless of the stock price. If VOO is $520 I’ve got to contribute that much to buy 1 share. I like to dollar cost average and do like $130-$140 a week to even it out across $7000 for the year. Even though the stock price of the VFFVX mutual fund is $56, I can buy $140 worth (or however much I want) every single week. I think if you want to do the odd stock here and there because you’ve got faith in it, or even just for fun that’s ok. I just would put the vast majority in your retirement fund. The time in the market over timing the market adage is true. If you haven’t, try a compounding interest calculator some time. It really starts racking up once you’ve been invested for decades.
>Like, if i waited just 6 months, that transfer would have been made at that new fund's lowest point (VFFVX), so would that have been a lot better and made a big difference? That depends on how the old fund performed during that same time. You can go do the math on it. Regardless, this is hindsight bias and the decision was a good one even if it didn't prove to be optimal.
This might be a dumb question, but i'm tired and not thinking clear, plus im a bit of a novice here. But long story short, back in late 2021 (when i was 31 and knew absolutely nothing about markets or investing) i talked to a financial advisor and he recommended i move my 401k from a stable fund to mostly a target date retirement fund. So that's what i did. i moved mostly everything from the stable fund (MetLife Reliance Stable Value Fund Series 25053) to mostly the target date fund VFFVX (Vanguard Target Retirement 2055). However, now looking at the timeline chart of it, it looks like i moved it all right at the peak, right before a 2 year downturn and slow recovery. My question is my timing of all this. Since i switched my investment all at once, on that peak, does that mean i was really unlucky with the timing of that? I know the phrase "buy low, sell high", but I'm unsure if that also applies to changing 401k retirement funds like this. Like, if i waited just 6 months, that transfer would have been made at that new fund's lowest point (VFFVX), so would that have been a lot better and made a big difference?
No im in the US. VFFVX and TRFFx are examples.
S&P 500 is not the same risk profile, indeed, but I will say this. In my personal opinion (which no one should listen to because I'm just some guy on the Internet), the S&P historically provides larger returns over the long term and has lower fees than the target date fund. So unless they plan to retire soon (sounds like that's not the case since they are in the 2055 target date fund) it may be better to take on slightly higher risk for more growth until they get closer to retirement age. I used to have a 401k invested in the exact same target date fund at vanguard and it, for the most part, seems to track the index anyway. When S&P goes up, VIVLX/VFFVX tend to go up, and when S&P goes down, they tend to go down. Just not as far in either direction. I may just be young and dumb but I don't see a point in holding bonds in my early 30s. If OP is older, or just sleeps better at night with lower risk, then there's nothing at all wrong with TD funds. You really can't go wrong either way.
You likely won't find many "investment experts" online, I recommend reading a book. Simple Path to Wealth is a very easy read, \~300 pages maybe 6 hours of reading. To answer your question directly, you should stick to the Target Date Fund (TDF) you're in until you understand a bit more. Free advice is great, but you'll get what you pay for on here sometimes. Plus, vanguard funds are cheap and reliable, VFFVX has an ER of 0.08%.
Not disagreeing, more like branching off: Far-out Target Date funds shouldn’t have a lot of bonds; [Vanguard’s 2055 fund](https://investor.vanguard.com/investment-products/mutual-funds/profile/vffvx) is just 10% fixed-income. The main reason for VFFVX not performing as well as the US market is its inclusion of international stocks; it’s more analogous to VT than VOO. The US and rest of the world have historically [taken turns](https://www.hartfordfunds.com/dam/en/docs/pub/whitepapers/CCWP014.pdf) outperforming, with the US being on a tear these past 15 years. How long will that last, who knows. Another reason for diversification, whether to bonds, foreign stocks, or anything else, is *[risk-adjusted return](https://sapientinv.com/investment-articles/how-much-in-us-stocks-vs-international-stocks-strategic-allocation)*. That’s basically the idea that people would prefer a smoother ride, but only until it starts to compromise performance. Over the last 30ish years allocating one’s stock 60% US / 40% foreign has produced the best risk-adjusted return, but all-US has provided a higher *absolute* return. Big question is: if you have no intention of selling these investments for the next 30 years, do you care if it’s a bumpy ride?
Hi all! I am hoping I can get some advice on my investments as I am new to this. I currently hold a TDF fund (VFFVX) and an index fund (VIIIX) in my employer sponsored retirement account. Both are split 50/50. Should I leave it as is? or just do 100% on the TDF? Also, opened up an additional investment account for my passive income. I am looking for growth and not afraid of risk. Currently hold 60% VVO 20% XMMO and 20% AVUV ETFs. I put in 4k so far. Is this a decent spread? anything you would change? Thanks in advance!
They'll _maybe_ fall less in a downturn. My target 2055 fund (VFFVX) drew down [24.44%](https://www.morningstar.com/funds/xnas/vffvx/risk) in 2021/22. VOO drew down... [23.9%](https://www.morningstar.com/etfs/arcx/voo/risk). Meanwhile, over those same 3 years, VOO has returned 27%, VFFVX 15%. So little drawdown protection with less upside benefit. I've been letting my employer match stay in my 2055 fund as a "safe" thing, but have been pushing my own contributions (and my Roth) into VOO/VTI type funds myself at 33.
A number of things: - To directly answer your question: VFFVX distributes in late December. [https://advisors.vanguard.com/investments/products/vffvx/vanguard-target-retirement-2055-fund#priceanddistributions](https://advisors.vanguard.com/investments/products/vffvx/vanguard-target-retirement-2055-fund#priceanddistributions) - The primary means of the fund gaining value is through changes in its NAV (Net Asset Value) which is calculated at the end of each market day. [https://www.investopedia.com/terms/n/nav.asp](https://www.investopedia.com/terms/n/nav.asp) - Some brokers, and JP Morgan may or may not, provide monthly account statements that include a personalized Rate of Return which is just a time weighted calculation of how much the value of your investments have changed on an annualized basis. It is not a statement of money paid out into your account. [https://www.investopedia.com/terms/a/annual-return.asp](https://www.investopedia.com/terms/a/annual-return.asp)
Yes ditch the high fee funds and switch to index funds There’s quite a bit of overlap in those three funds - ~80% of VTSAX is VFIAX, and ~55% of VFFVX is VTSAX If you’re comfortable with the stocks/bond allocation of VFFVX then you can go 100% of that, or a later target date if you want a higher stock allocation, or drop the target date and do a mix of VTSAX/VTIAX
I recently got rid of my financial advisor as I don't think he had my best interests in mind. With that being the case I am in the process of looking deeper at many of the funds he had me in. My question has 2 components: 1. Over 80% of the portfolio is split between 2 funds that have a 1.33 and 1.42 percent management fee and a 1% back-load fee. Based off of the management fees alone, I should just not care about the back-loads and get out of these funds asap right? 2. Does a distribution of 50% VFFVX, 30% VFIAX, 20% VTSAX seem ok? Between the back-load fees of the old funds and the front-load on the new funds it will be about 3k in fees, but in my head it makes sense just on the management fee savings. Thanks for your advice. * Demo: 37 years old in US * Salary: 155k/year * Objective: Retirement savings * Time horizon: ~30 years * Risk Tolerance: willing to take some risk as I think I am still young. * Zero debt
Not all, but I checked historically bond vs stock prices. Bond value goes up when rates go down, but…. So do stocks. But stocks gain at a way better rate. Compare the charts of VFFVX vs SPY. I regret having put money in VFFVX, could have double the money (6 digit value…) ugh
Not all, but I checked historically bond vs stock prices. Bond value goes up when rates go down, but…. So do stocks. But stocks gain at a way better rate. Compare the charts of VFFVX vs SPY. I regret having put money in VFFVX, could have double the money (6 digit value…) ugh
The smartest thing you can do is open a Roth IRA with Vanguard and invest in a mutual fund like VFFVX 2065 or whenever you’d like to retire. Mix that in with ETFs like VOO which Vanguard’s version of SPY, following the S&P 500 and also VT which is their version of total world stocks. Add close to the same amount every week to dollar cost average. If the market is up you can add a little less or down you can add a little more. A lot of people might tell you do day trade in this or that or invest in this company or that l, but unless you’re one of the few who are really good at it you’re going to lose money. This comes from experience of trying and failing at it, luckily not losing too much. The truth is at the market itself will gain like 8-10% over your lifetime which doesn’t sound like much until you take compounding interest into account which is why you want to invest in broad things like mutual funds and broad ETFs. If you do it consistently at your age you’ll have millions by the time you retire with minimal risk. It’s way less exciting but it’s so much smarter.
Sell and buy VFFVX and park it there for the next 30 years
Have you considered doing a single target date fund like VFFVX? You’re kind of making your own version of it with this mix.
Congrats on starting the journey! Agree with putting it in VOO until you learn more :) don’t be frightened about movement in the market though, and sell out of a position or try and move your money around thinking “dang this other fund is doing so much better” because you likely picked a fund for its overall return/performance which factors in many many years. You seeing one fund down and another up doesn’t mean the one that is down will not end up on top in 10 years. Stay the course for at least a full calendar year, then reassess. I was chasing gains and moving money in and out of ETFs when I first started and all that did was lose me even more than if I just stuck with a target date fund, what I originally had my money in. Since you are starting later VOO has more upside potential but will have a bit more downside than a total market fund, but I think you could use the extra growth potential due to your age. The 3 most simple choices, in my order of recommendation, are: 1.) S&P 500 fund (VOO) 2.) Total Market Fund (VTI) 3.) Target Date Fund (VFFVX)
VFFVX is up >14% over the last year. Just to underline the point about you picking a short window and comparing to the current HYSA rate. Especially when it comes to a retirement timeline you'll want to lengthen the window out to get a look at longer term trends. HYSAs are also tied to current interest rates and will travel up or down in sync with those rates. If you wanted to "lock in" 5% yield for a significant length of time you'd turn to bonds which have longer maturities. What Target Date funds like VFFVX do is have an internal mix of stock and bond funds and over time they shift the proportion of stock vs bond exposure to become more conservative the closer you get to retirement to preserve capital and reduce risk. You're asking good questions but I think it'd be good to start researching the basics of stocks, bonds, ETFs, etc. to get an idea what their various pros/cons are and the circumstances in which their used. In the meantime parking your money in a Target Date fund is a fine option that's intended to be a relatively safe "one stop shop".
Absolutely the best advice I’ve gotten so far, thank you so much for responding! Question though: I checked into the target retirement option, via vanguard looks like VFFVX is my option and it’s ytd performance is 4.19% right now. Would a hysa at 5% be better to shuck money into for the 30 years instead? If I’m not mistaken it’d be a bit more consistent..? What would be the difference?
The simplest is put it all in a Vanguard Target Date fund based off when you expect to retire.. for you probably 2055 VFFVX https://investor.vanguard.com/investment-products/mutual-funds/profile/vffvx. These funds will invest in a widely diversified stocks and bonds portfolio. They charge low fees. Since you’re starting from zero knowledge this is the best. Buying individual stocks when you have little money and little knowledge of what you are doing will result in you losing all your money.. don’t do that. Just buy target date fund keep adding to it and forget about it. You could use Fidelity or Vanguard to invest in this. You should be contributing that money to a Roth IRA (max you can contribute is $7000 for 2024) this type of account is for retirement. If you withdrawal before 59.5 yrs old then you get penalized but if you withdraw after that age, it’s tax free.. all yours not Uncle Sam. Go to r/bogleheads. Read their wiki. Keep it simple.
More specifically, if you punch the funds into a backtest to May 2019, [this is what you get](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=5KXZV5rmHSehO7nr01zMa2): VFFVX: +56.05% VOO: +92.63% Yes the S&P 500 has been on it’s best run in history, international stocks have been flat, and US bonds had their worst bear market in history, so just looking at S&P 500 in hindsight would have been better than a diversified TDF, although you couldn’t have known that at the time. But OP’s numbers are way off, and a 9.47% CAGR for the TDF is great. They should have $15k by now, not $12k, but it’s not clear where the miscalculations are occurring.
question about target retirement funds. For example: VFFVX - Vanguard Target Retirement 2055 Fund: What happens in 30 years when i want to use the money I've invested in VFFVX. When i go to sell shares of VFFVX in the 2050's, who will be buying these shares on the other side of the transaction? Thanks for any insight.
I started maxing out my Roth Ira at age 33 and hold the tdf VFFVX in my Roth. If this fund performs as expected, how much should I have if I max out every year till I am 60-65?
>All or nothing can’t encompass everything What is missing from let's say VFFVX? >Reminder: I said invest within it. I do. Just don’t put all your eggs into that baskets. A TDF isn't really just one basket. It's basically 3 baskets (US, ex-US, bonds) in one wrapper.
I have about $20K in a 403(b) managed by AIG from a previous employer. Can I/should I roll this over into my Vanguard Roth (about $50K in VFFVX)? Or to a new Vanguard Traditional? I'll never make anywhere near enough to think about backdoor Roth stuff, and have contributed to my Roth limit every year since I made it (about 7 years ago, I'm 30).
Yeah I’ve historically bought VFFVX through Vanguard. With this example, is there general advice that advises against a market order / lump sum?
[VFFVX (Vanguard 2055)](https://investor.vanguard.com/investment-products/mutual-funds/profile/vffvx) is at ~10% bonds: 54.10% Vanguard Total Stock Market Index Fund Institutional Plus Shares 36.00% Vanguard Total International Stock Index Fund Investor Shares 7.10% Vanguard Total Bond Market II Index Fund9 2.80% Vanguard Total International Bond II Index Fund
Yeah I agree, I will push back and suggest at least VTI The funds I do have in the Roth with them already are: VQNPX VFFVX VEIPX
Hello What about "Target Retirement Fund"? VFFVX for example? can't decide between VTI and VFFVX thank you
I am 35 yrs old and on my third year maxing out roth ira. I hold VFFVX. Everything I have learned from the boglehead sub says not to time investment. Still I wanted to get some advice on this as I am about to max out roth again for 2024. Is there any reason to delay buying max number of shares of VFFVX? The reason I ask is I have read the s&p 500 is almost at an all time high.
>https://www.reddit.com/r/personalfinance/wiki/commontopics/ Yea that sounded a bit shady. Thanks, I thought putting the rest into VFFVX might be the proper path but wanted to get some extra opinions.
I would seriously stay away from GGVILLAGE's suggestions, it seems like a Whole Life Insurance sales tactic. If I was in your shoes I would definitely invest more into VFFVX. You will find plenty of criticisms of target date funds from people that are full of recency bias. Just look at VFFVX current holdings: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vffvx](https://investor.vanguard.com/investment-products/mutual-funds/profile/vffvx) 54% Vanguard Total Stock Market Index Fund Institutional Plus Shares 36.20% Vanguard Total International Stock Index Fund Investor Shares 7% Vanguard Total Bond Market II Index Fund 2.80% Vanguard Total International Bond II Index Fund This is basically a three fund portfolio, a very legitimate investment strategy. [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) If You Can (short booklet still relevant today): https://www.etf.com/docs/IfYouCan.pdf Money management tips: [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) ​ When I was younger I wasted a lot of time picking investments thinking this would make me rich, instead I learned that I should have focused more on improving my income and increasing my contribution rate. Your greatest wealth building tool is your income. The more money you earn the more money you can invest and reach your goals even sooner, it's as simple as that.
Hi, looking for advice on where to invest \~$40k that I rolled over to my Roth IRA from a previous employers 401k. That money is currently sitting in the Vanguard money market fund of that account. Everything else I have in the Roth is invested in the Vanguard Target Retirement 2055 (VFFVX). Should I just buy more VFFVX with that $40k or buy VOO or something similar that has a little higher of a return? I’m not sure if makes sense to mix target date funds with other funds though? For my background, I'm a 33 y/o living in the US with a full-time job that pays decently well. I don’t plan to take this money out anytime soon. At my age I’m ok going a little riskier (I might reallocate to a Target Retirement 2060/2065 at some point). My current employer 401k is also all in a target date fund 2055. In a separate brokerage account I have VTI and VXUS as well which adds a little more risk to my portfolio.
Is the VFFVX tdf actively managed or passively managed and what is the difference? Should I avoid an actively managed fund?
VFFVX (Vanguard Target Retirement 2055) has an expense ratio of 0.08%. VTI has an expense ratio of 0.03% and the extremely simplistic diversified portfolio proposed in the top comment has a blended expense ratio of ~0.047%. So it's about 1/2 the fees, nowhere close to 1/20th. And when we're talking about such small numbers, the impact of this decision by time of retirement is likely to be low 4 figures, a very low price to pay for not having to rebalance your portfolio once a year for the next 30+ years. The target retirement account has
>VFFVX You dont need to open another account. You put money in the account as always and you divy up the money between your VTI/VXUS/BND and your VFFVX like normal. No biggie. For the VFFVX, you want that in a tax sheltered account (Roth, IRA, 401k). The reason is because turnover, dividends, and gains will be taxable in a taxable account whereas a sheltered account wont ding you for that. VFFVX vs VTI/VXUS/BND - the VFFVX is called a lifecycle account; currently its 90% stock and 10% bond (90/10). What these accounts do, is in 10 years from now it will rebalance to be 80/20, 20 years from now it will be 70/30, every decade or so it changes the amount of stock/bond. Your VTI/VXUS/BND is a constant allocation 70/30 portfolio, in 30 years from now it will supposedly be the same.percents stocks and bonds. Unless you change it. Your current 3 fund and the VFFVX are nearly the same except for the allocation. My suggestion is if you are considering the VFFVX and your 3 Fund. Id just opt for the lazy option of converting 3 Fund to VFFVX for your IRA/Roth/401k. Your two options you listed are very identical in stock choice, again, just how its allocated. The VFFVX will do the driving for you. For your Taxable Account, you want to stick with VTI for now. Do some learning on taxable account investing and think of a different way to use it. But the VFVVX isn't for taxable accounts, and the BND portion of your 3 Fund isn't ideal either. So just sticking with your VTI for now is good enough.
35M. Job doesn't have 401K. I am very new to investing and retirement savings but at least have my foot in the door. Have set up a brokerage and roth ira acct. Both are set up for weekly contributions and orders as follows. Brokerage - entirely VTI. Roth - VTI/VXUS/BND \~40/30/30 %. My question is for a target fund such as VFFVX, should I set up another account to start making contributions toward? and if so, which type of account, or should I just include it in my current account and evenly distribute across these symbols? TIA
VFFVX is the target date fund but it holds different assets in the fund. It’s more aggressive the farther out I am from retirement and as the years pass the assets within the fund change to be conservative. I pulled this straight from Vanguards website. “Vanguard Target Retirement Funds offer a diversified portfolio within a single fund that adjusts its underlying asset mix over time. The funds provide broad diversification while incrementally decreasing exposure to stock and increasing exposure to bonds as each fund’s target retirement date approaches. The funds continue to adjust for approximately seven years after that date until their allocations match that of the Target Retirement Income Fund. Investors in the funds should be able to tolerate the risks that come from the volatility of the stock and bond markets. You may wish to consider this fund if you’re planning to retire between 2053 and 2057.” https://investor.vanguard.com/investment-products/mutual-funds/profile/vffvx
No, that's how target date fund work. It's just weird as it seems like you're saying your 401k plan only has one option in it, of which that one option is VFFVX.
It certainly does seem overly complicated for a deferred comp plan. I just put mine into Vanguard's Target Retirement 2055 fund (VFFVX).
All of my employer match and a good chunk of my contributions go into Fidelities 2055 fund, VFFVX. It's like, 10% bond, 35% foreign stock, 50% domestic. I put a bit into VIGIX (and swapped some VFFVX over to it over 2022 during the downturn) which is the Fidelity Growth stock fund which is something like 98% domestic stock, a bit riskier. I figure I want the 2055 fund for most of my stable future, but i'm willing to put a decent chunk into growth bets at my age.
I would recommend the Vanguard Target Retirement 2055 Fund (VFFVX)
What are you comparing? VFFVX is a target retirement fund that includes a mixture of the Total US market, Total Int market and Total Bond market. The S&P tracks a basket of stocks that is only in the US. The returns won't look close. If you want to be in the S&P through Vanguard, you should be in VFIAX.
I would take a spin through the PF wiki, since it covers a lot of ground: [https://reddit.com/r/personalfinance/wiki/commontopic](https://reddit.com/r/personalfinance/wiki/commontopics) A few quick thoughts: > I'm thinking of putting all of it into Vanguard and just letting it sit until I reach 60 years old. I know it's not wise to put all my eggs in one basket, but I'm also looking for something that's simple and low-maintenance. When people say not to put your eggs in one basket, that means to be careful with how you invest, but it's not really talking about how many brokerages you use. Using Vanguard is perfectly safe, and if you pick the right investment it can also be very safe. The simplest choice for you would be a target date fund like VFFVX, which is a 2055 target fund, or a similar fund with your target retirement date. That is very diversified under the surface, so it's a good choice if you want simple. >I'd also like to start investing for my child's future education, so he doesn't have to worry about paying for undergrad. A 529 account is perfect for this.
That is fairly poor. The S&P500 is the benchmark of "good". VFFVX has a price return of +74.6% and a total return of +124% for the past ten years. The VOO fund for the S&P500 +173% price return and +229% total return for the past ten years.
So with my work I use an LLC to help with some of the tax stuff. My financial advisor that I started with last year does financial advising, taxes, LLC management, and disability/life insurance stuff so it’s essentially a one stop shop. Helps immensely with quarterly filing in 3 different states but it’s not cheap 250$/month for taxes and I can’t remember the annual percentage management fee but last month was 20$. I was interested in there breakdown too it’s ABNFX, AMBFX, AMRFX, ANBFX, ANWFX, MFEIX, and VWIAX. ABNFX, MFEIX, and VWIAX are the majority of it. I feel that they are concerned about a recession and have transitioned a big portion into bond markets, which isn’t unreasonable in our current climate but it’s definitely a conservative approach. Prior to being financially fully realized I did my own investing with vanguard and just dabbled in Wealthfront. I put 9k in forever ago just to see how it’d grow and it’s done pretty damn well. Same with the VFFVX. That was birthday money from my teens and jobs along the way.
Age: 30 Job: Independent contractor 1099 medical work last year pretax was my first year out and I made 300K in 6 months of work Objectives: retirement, potentially house in 6-12 months Timeframe: retire at 55-60 so 2055 roughly Risk tolerance: high risk tolerance Current holdings: 65k VFFVX, 12K in Wealthfront autoinvestor, 22K starting to invest with my financial advisor group mostly in ABNFX right now, 10K emergency fund, 270K cash on hand before paying 2022 taxes Debts: 380K schooling at 6% fixed interest that is currently on hold Do you guys think I should wait to pay off my debt and throw more money at my financial advisor or just put in VTI or the autoinvestor? I feel like I’m sitting on too much cash currently. Any ideas?
I would put as high a %age as you can afford for December, yes, might as well pack in what you can (and grab whatever match you can) for 2022. FYI, 401ks are worth it for the tax-advantages. In any event, moving forward, you don't say what the matching is, but I'd *at least* contribute enough each period to get all the match. Probably more than that, really, if you can afford it. If you're 34, then you're probably retiring in ~30 years, making either the 2050 or 2055 the target date to shoot for. I echo the other poster and would just say 100% into VFIFX or VFFVX. You mention the idea of 75% target date, 25% targeted value... I'm not sure what you mean by that term, but the one fund actually called 'targeted value' in your list is DFFVX. It's a small-cap value fund, meaning it invests in smaller (though still publicly traded) US companies (specifically, 'value' companies, aka ones that the fund manager believes are trading below their intrinsic value). The target dates will already put you into that portion of companies (a small amount). You *could* concentrate yourself more in that area by also putting some money in directly but, absent a particular reason to do so, 100% target date is super simple, idiot-proof, and a perfectly good option.
100% VFFVX with weekly contributions
A good idea is to use target date funds. You look for one based on your expected retirement date and the fund automatically adjusts the stocks vs. bond ratio to get more conservative as you approach the fund retirement date. 100% of my Roth is in VFFVX which is an expected 2055 retirement date. Based on your age you could look at VLXVX which is the Vanguard 2065. The expense ratio is higher than constructing a three fund portfolio yourself, but it truly is a set and forget approach. You can even do automatic monthly investing and truly never look at it until you retire. https://investor.vanguard.com/investment-products/mutual-funds/profile/vlxvx
The main fund I have in my Roth IRA is a target date retirement fund (VFFVX) which I've had for a while now. I have 1 ETF currently which is VEU and I'm looking to add 1 or 2 ETFs and will just continue to DCA from there and not really pay attention. I just want a little extra diversity. BNDW is one I have been considering, but does that make sense considering my main index fund already has exposure to international bonds? Is it really going to give me the diversity I am looking for? I'm very much a novice and still learning, so any advice or recommendations are appreciated.
Another idea not covered here is target date funds. They can provide you with some diversification, take zero thought or effort, and will automatically adjust your allocations as you get older to fit your time horizon. If you are 27, you should be able to access your retirement funds in about 33 years. So 2055 might be a reasonable target date for retirement. VFFVX fits the bill, and has a .08% expense ratio.
My wife's roth is 100% VFFVX as well. Target date funds are the quintessential set it and forget it funds.... nothing wrong with it.
Hi friends. I’ve got my wife’s Roth on vanguard 100% into VFFVX. Would you say this is a good move or should we be investing more into VTI? Thanks for your help.
Hi friends. I’ve got my wife’s Roth on vanguard 100% into VFFVX. Would you say this is a good move or should we be investing more into VTI? Thanks for your help.
~~Limited 403(b) Fund Options~~ I would change the title to: 403(b) Fund Options Most People Wished They Had If I was in your shoes I would simply choose a single Vanguard Target Date Fund (an entire investment portfolio all in one fund and grows more conservative as it gets closer to the target date). [https://investor.vanguard.com/investment-products/mutual-funds/target-retirement-funds](https://investor.vanguard.com/investment-products/mutual-funds/target-retirement-funds) If you were planning to retire at age 65 I would go with the Vanguard Target Retirement 2055 Fund VFFVX. If you were to planning retire at age 75 I would go with the Vanguard Target Retirement 2065 Fund VLXVX In your case I would probably split the difference and go with Vanguard Target Retirement 2060 Fund VTTSX p.s. Don't be scared about the target date's year, it's just a helpful guide on which fund to select (you can retire sooner or later regardless of the fund year you choose). Personal Finance 401k fund selection guide, it can also be used for a 403(b): https://www.reddit.com/r/personalfinance/wiki/401k\_funds/ Lesson I wish I would have learned sooner: Which matters more for building wealth: Your saving rate or your investment returns? https://www.getrichslowly.org/building-wealth/
Not if it's VFFVX. It's a mutual fund.
>Vanguard Retire Trut Plus (2055) Is the ticker VFFVX? (Ticker symbols are better identifiers than fund names) Here's some info on it from Yahoo finance: [https://finance.yahoo.com/quote/VFFVX?p=VFFVX&.tsrc=fin-srch](https://finance.yahoo.com/quote/VFFVX?p=VFFVX&.tsrc=fin-srch) I would say it's a pretty good choice for you now. There are other possible choices within your 401k so revisit this as you learn more about investing.
Yes basically. I'm with Vanguard so every paycheck a % of it automatically goes into VFFVX which is one of their Target Retirement funds which is a bundle of a ton of different companies in one fund. On top of that in a brokerage account I allocate money to one of many funds I hold but it usually goes to VTI which is a total US market fund. But I have VDE which is an energy fund, VXUS which is an international fund and so forth.
Would you suggest buying into these funds or a retirement plan fund like VFFVX?
I mean, I sold all my VFFVX and put it into QQQ right when the market hit the bottom last week. I feel pretty smart for doing that
dude look into a vanguard targeted fund. VFFVX play personal pics with less of your portofino
On her dashboard it shows all $6k just deposited are in the VFFVX but it’s only 70% in stocks, with 23% short term reserves and 7% bonds. Has me super confused since mine shows 90/10 in my 401k. Why vanguards 401k and IRA platforms would look different also is beyond me. Not too impressed so far
Not sure where you're seeing that, [VFFVX](https://investor.vanguard.com/mutual-funds/profile/VFFVX) shows only ~10% bonds Do you have other cash or holdings in the IRA?
>My dad suggests VFFVX but I’ve looked into VFIAX as it seems to outperform that, and I’m younger. I am a fan of target date funds for a 'set it an forget it' option but not for a taxable account (due to their automatic rebalancing and bond allocation, I would not hold a TDF inside a taxable account). Tax efficiency of investments should be taken into account in a taxable account (not an issue in tax advantaged accounts like a 401k). [https://www.bogleheads.org/wiki/Tax-efficient\_fund\_placement](https://www.bogleheads.org/wiki/Tax-efficient_fund_placement) I wouldn't buy VFIAX at Schwab because they will charge you a commission of (I believe $74.95) every time you buy it at Schwab. Research Schwab branded ETFs: [https://www.schwab.com/schwab-index-funds-etfs](https://www.schwab.com/schwab-index-funds-etfs) Two funds I would look into: SCHB (this basically contains all the U.S. stock market, including all the stocks listed in the S&P 500 plus mid and small cap stocks). [https://www.schwab.com/research/etfs/quotes/summary/SCHB](https://www.schwab.com/research/etfs/quotes/summary/SCHB) SCHF (this will give you some international exposure) [https://www.schwab.com/research/etfs/quotes/summary/SCHF](https://www.schwab.com/research/etfs/quotes/summary/SCHF) Bogleheads poll on how much international equity exposure people use: [https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as\_a\_us\_based\_investor\_what\_percentage\_of\_your/](https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as_a_us_based_investor_what_percentage_of_your/) The one book I highly suggest: The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life by JL Collins p.s. Your Dad rocks for trying to help, that's already more than many dads do.
25 yrs old, just threw $10k into a Schwab account and trying to decide where to put it. Make about 70k/yr, monthly expenses are a little less than $3k/month, already have a 401k set up. My dad suggests VFFVX but I’ve looked into VFIAX as it seems to outperform that, and I’m younger. Should I throw all my funds in an S&P 500 index fund or set aside a % for stocks/ETFs, which I have very little experience with. Trying to be hands off as possible. Thanks!
What does one invest in when there is a market correction? I don't want to be a sitting duck being nearly 100% in s&p 500 and bond yields suck don't they? So bond funds aren't a good option either. * Late 20's, USA * Low $50's income * I'd like to buy a house. * I dunno, 2-3 years. Just trying to weather out a potential storm. * My risk tolerance is currently S&P 500 level. No money to really waste on price predictions. * VFIAX (growth), VWELX (emergency fund), VFFVX (retirement). A picture of a monkey NFT (/s) * No debts fam. Just pay half my salary to rent.
> I took a deeper and it's only performed ~12.5% for the year while the overall S&P 500 indexes are closer to 30%. This is not a deep look. This is a hint to look deeper into [VFFVX](https://investor.vanguard.com/mutual-funds/profile/VFFVX). 2055 is 35 years out. Based on history, we'd expect SPX to not lose money over that time period. So my base assumption would be that this is still close to 100% equity. Vanguard says it's 55% VTI and 35% VT. The remaining 10% is BND+BNDX. So there's 90% equity coverage, in line with what I'd expect. The composition seems fine to me. > I'm not sure how this fund only performed around half as well * A large international exposure, where markets have been doing less well. * An appreciating dollar made the internal equity less dollar-worth. I.e. this one year sample was a dud, and the fact it's still above the average SPX year is pretty good. Because of the stronger diversification, you'd expect lower variance, and hence smoothed out returns. If this investment profile doesn't suite you, because you expect SPX returns to continue the way they have, then the target fund isn't for you. If you want something that's buy-and-forget, this still seems like a good choice.
If you contact an advisor, they will charge you 1-3% in order to make you a portfolio that's a mix of stocks and bonds that increases bonds based on your age. You can get that for 0.1% by buying a vanguard fund like $VFFVX.
VFFVX is 15 bp to VUG's 4 but Sure, you're right it's a small amount relative to the growth over time.. But the extra expense ratio a managed fund like this charges feels like a bit of a bait and switch when this Target 2055 fund underperforms the 2 ETFs I listed above and the S&P500. Paying more for negative alpha. At this age conventional wisdom is to put nearly 100% stock index mutual funds, yet that fund underperforms the S&P 500. https://imgur.com/a/cb6Uwg6
Yes, VFFVX is fine - make sure you’re maxing out tax advantaged accounts before contributing to taxable for retirement savings
I am a complete novice to investment but I wanted to set up an additional retirement fund. I need reassurance I have been doing max contributions to VFFVX and only VFFVX. Am I doing it correctly?
Dip your toes in the water. Invest in what you are comfortable losing. i.e. 1000/10000/etc. Keep it simple; maybe get a target date fund. You're about 35 years from retirement, so VFFVX probably works for you. Buy it, and do your daily checks on the activity of your fund (it only updates once a day, so it's going to be a simple check). At some point, you'll slowly gain confidence (or not), and that might get you to start investing more. Once you gain enough strength, you might be tempted to try other Boglehead type strategies and that should springboard you directly into fulltime investing.
I'm not the best explainer so here's a [link](https://www.investopedia.com/articles/investing/112415/buying-vanguard-mutual-funds-vs-etfs.asp). You can also find them talked about on Reddit. They're mutual funds, not stocks so they trade differently but have insanely low fees. You need to setup a Vanguard account. I believe the order minimum is either $3k or $10k. I started my account at the beginning of the year with $30k (10k of VFFVX, VFIAX & VTWAX). Account has grown 5k so far.