VTINX

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I'm retired as well, some days I feel we are doomed and other days I'm optimistic. That's life. If you're nervous, take some risk off the table, but staying invested is kinda important no matter your age. Assuming you are in the retirement Vanguard Retirement TDF (VTINX), that is 67% bonds, so fairly conservative, although the bonds have some duration risk at 5 years average duration and have probably felt some pressure the last few months. It wouldn't be crazy to take $100K out of VTINX and build a mini-ladder with ishares TIPs target date bonds depending on when/if you'll need that capital for expenses. But I'm not a professional and I don't know your overall situation and budget. Keep enough cash equivalents on hand for emergencies and at least two years of expenses.

kronco

Vanguard target date funds reduce stock exposure over time until 7 years after the target date when they move to the Target Retirement Income Fund (VTINX) allocation for, well, forever. That is 30% stocks and 70% bond allocation at that point. Source: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtwnx#overview](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtwnx#overview) : *The funds continue to adjust for approximately seven years after that date until their allocations match that of the Target Retirement Income Fund.* And that final fund: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtinx](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtinx) I assume other firms do something similar. You can select funds different then your retirement year. if you want more stock exposure with the risk/reward that brings go with one after you plan to retire. Want less risk, go with one dated before you plan to retire. it's a common approach. Vanguard funds are good. Their fee for the fund is just that in that it includes all the funds it holds. That is you don't pay the fund fee on top of the fees of the underlying funds. 0.08% in total fees is hard to beat here. Vanguard uses short duration TIPS in their target date funds to manage inflation. Deep dive it here as to why they use short duration: [https://www.bogleheads.org/forum/viewtopic.php?t=443866](https://www.bogleheads.org/forum/viewtopic.php?t=443866)

DaemonTargaryen2024

>Target retirement funds such as 20XX. What happens post date? Vanguard's TDFs have a "glide through" path to where it keeps shifting into bonds past the date of the fund. Example: [Vanguard 2050](https://investor.vanguard.com/investment-products/mutual-funds/profile/vttvx) has 50% stocks still. And it will eventually merge into [Vanguard Target Retirement Income](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtinx) fund, which is 30/70. >1 - But if i retire on 2027 and decide to buy a 2025 target. Since its post target date it would be in bonds. No. I'm not aware of any TDF that goes 100% into bonds. >Would I get the dividend yield indefinitely? Or would the target fund have some liquid date in the far future? What happens then? The fund is just a fund. It never liquidates, and it doesn't guarantee you've saved enough to last the rest of your life. >2 - with the current administration changing the framework and actively influencing the fed and tweaking numbers, inflation is sure to come. But how will the bonds handle in the long term if investors lose confidence in the us market. That's a little harder to answer. >3 - Do retirement funds post target date diversify in international or pure us bonds? VTINX still has 15% ex-US bonds and won't go lower than that. 4 - Any negatives if I early retire in 2 years (then age 53 in 2027) and go with a 2025 / 2030 retirement fund? No. The fund year is just a benchmark; it has no actual impact on your account. A 20 year old can invest into the 2025 TDF for all anyone cares (they shouldn't, but they can). 5 - any recommend target retirement funds?I know vanguard is popular. For either taxable or Roth. Am not trying to min max for absolute best results but reasonable good enough/ above average to set and forget. Vanguard is the gold standard of TDFs. [Do not invest TDFs in a taxable account though](https://www.bogleheads.org/forum/viewtopic.php?t=447240).

Kashmir79

There are infinite number of possibilities that can be calibrated to your willingness/capacity for risk but the expected returns will be functioning what the market offers for that amount of risk, not what you want it to be. How much of a decline are you willing to accept and how long are you willing to wait for it to recover? Conservative multi-asset allocations like VTINX, AOK, and the Golden Butterfly Portfolio should returns in the range of 5-8%. They will occasionally drop in value, down to -20% in worst cases, but tend to recover within 3 years at the longest (unlike stocks which can drop -50% and take a decade to recover). If that is too risky, you might want more cash, but the expected returns will be decreased.

ApothecaryHarry

Thank you for your reply. After getting some feedback on the Bogleheads forum, I've decided to go with the VTINX mutual fund for them. Will make withdrawals simpler and also simplifies asset management like a TDF.

kiwimancy

It will probably be merged into a retirement income fund like VTINX.

JeffB1517

$12k / year is 11%. I'd probably go VSCGX if I were to pick a fund. But VTINX isn't unreasonable.

UpNArms

Let’s say they withdraw about $1000 per month starting in 3-5 years. I’m basically just trying to find a low risk vehicle that will help keep up with inflation and take advantage of the currently high interest rates. So VTINX seemed like a good way to do that and broadly diversify

JeffB1517

You need to figure out how fast you want to deplete the $110k. 67 is potentially quite a long way away from death. If you are trying to make it add say $5k a year inflation adjusted then it needs to be more aggressive. VTINX much less a money market will erode very fast. If the goal is more like $20k / year for the next 5 years then its fine. The good thing for you is that if your parents are in low brackets their gift taxes are low. You can pretty much do whatever you want as long as your make it periodic. If you want to get a 3rd party involved (in case you die early for example) I'm going to say talk to an insurance agent (I know I'm going to get downvoted for this but...). There are lots of tax loopholes regarding insurance. You very likely can construct something where you deduct the income on your taxes and pay it on their's via some sort of insurance gimmick. That's going to be worth the fees.

StabbyPants

so you have guaranteed return until then, at which point you shift to VTINX or something suitable

kiwimancy

They usually merge into an in-retirement fund. For example, Vanguard has VTWNX Target retirement 2020 which will soon merge into VTINX Vanguard Target Retirement Income Fund (not sure exactly when). VTINX maintains a 30/70 allocation.

samesunng

He should probably be adjusting his asset balance. Moving from VOO to VTINX wouldn’t be a bad idea.

SteveAM1

> What can I look at for investing that’s an in between of an emergency fund and a swing for the stars fund? Is there a name for that? VTINX or AOK.

SteveAM1

5 years? VTINX or AOK.

SteveAM1

VTINX. 30% global stocks and 70% global bonds (with some TIPS).