Vanguard Target Retirement IRA

[hully1029]

I have opened my IRA through vanguard and looking into the Target Retirement accounts. The specific one I'm looking into is the VFIFX (target retirement 2050).. are these dependable accounts or should I be looking elsewhere?

[glen]

The date specific accounts just change risk % as you move closer. Most are very conservative the last 15 years. Not sure on that particular one but I have a Vanguard 2030 and it has done a little better than 7% over last 10 years

[HogHunter34]

They are good choices & like Glen said they make it easy by migrating the fund toward more conservative investments as you approach your target retirement year. However, there is a tendency to pay higher expense fees on these funds. You can look at the breakdown of the fund details & set up your IRA to match the choices at a lower expense ratio more than likely. The flip side is you would have to move the funds into more conservative choices later as you approach retirement age. I have an IRA with Vanguard but it’s not in one of the target retirement funds

[thegrouse]

Depends on your goals. I would say they are a good set and forget it plan. IIRC you had a pension? That could change your strategy. Probably best to do some reading or speak with a financial planner.

[techzan]

I have opened my IRA through vanguard and looking into the Target Retirement accounts. The specific one I'm looking into is the VFIFX (target retirement 2050).. are these dependable accounts or should I be looking elsewhere?

I opened up an account with VFIFX about a year or so ago. So far so good...

[Bullseye07]

I’ve got one through work that I joined early in the year. Target 2055. It had done well. about 7% up until the last few days when Trump started opening his mouth again about tariffs.


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[jds247]

I have 60% of mine in vanguard 2040 and 40% in high risk that I can't recall the name of.. I just pulled up my fidelity and I'm at 15.8% for the year and 22.6 % ytd

[tdwinklr]

Yes, good funds. Just pick the one with the year you anticipate your retirement and the risk will apply accordingly. I have one of these in my portfolio as well.
Just do NOT lump everything into one fund though. Diversify!

Good luck.

[TxAg]

For "set it and forget it" you just can't beat it. Keep plugging money into it and enjoy your retirement when the day comes

[Throwin Darts]

Yes, good funds. Just pick the one with the year you anticipate your retirement and the risk will apply accordingly. I have one of these in my portfolio as well.
Just do NOT lump everything into one fund though. Diversify!

Good luck.

The fund diversifies for you. The 2050 fund owns Total Stock Market, Total International Stock Market, Total Bond Market and Total International Bond. Its diversified between both stocks and bonds and international vs domestic and becomes more risk adverse over time.

[tps7742]

I have opened my IRA through vanguard and looking into the Target Retirement accounts. The specific one I'm looking into is the VFIFX (target retirement 2050).. are these dependable accounts or should I be looking elsewhere?

Congrats to you for at least looking to the future for your financial health. You are way ahead of most people. The younger you are the better to get started.

[Rush2Judge]

I have opened my IRA through vanguard and looking into the Target Retirement accounts. The specific one I'm looking into is the VFIFX (target retirement 2050).. are these dependable accounts or should I be looking elsewhere?

IMO this is a very good approach. Fees are low and you achieve diversification plus active management (rebalances automatically). If you are chasing the absolute highest rate of return, this won't be it. If you want a good return with low stress, this is a good fund. If you are early in your career (which a 2050 target would indicate), you could add an S&P 500 index fund as well. But, I would start with the target fund.

[tps7742]

I’ve got one through work that I joined early in the year. Target 2055. It had done well. about 7% up until the last few days when Trump started opening his mouth again about tariffs.


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I would assume you are in this fund for the long haul? If you are already worried about these small bumps in the road about tariff rumbling I feel for you. I agree with you that Trumps statements are ridiculous at times and uncalled for other than take action. Politics at its best. I used to sweat the small things but in the big picture?

[hully1029]

Congrats to you for at least looking to the future for your financial health. You are way ahead of most people. The younger you are the better to get started.

Thanks. Will be 32 in feb.. had this for almost a year. Have my regular TMRS retirement going, a small 403b, and this IRA.. dang near breaking me, but itll be worth it later.

IMO this is a very good approach. Fees are low and you achieve diversification plus active management (rebalances automatically). If you are chasing the absolute highest rate of return, this won't be it. If you want a good return with low stress, this is a good fund. If you are early in your career (which a 2050 target would indicate), you could add an S&P 500 index fund as well. But, I would start with the target fund.

As posted above, I have some other money going into other accounts, so I dont need the highest rate of return.. would I like the highest rate? Of course, who wouldn't.. but I would rather be more secure, right now.. buuttt I could definitely look into it.

What higher yielding funds do you speaketh of?

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[Bullseye07]

I would assume you are in this fund for the long haul? If you are already worried about these small bumps in the road about tariff rumbling I feel for you. I agree with you that Trumps statements are ridiculous at times and uncalled for other than take action. Politics at its best. I used to sweat the small things but in the big picture?

Well I’m not in a Target 2055 fund to get rich quick.

Doesn’t mean I won’t complain when I lose money. Even if it is imaginary.


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