Author Topic: Best fund for a older/simpler man?  (Read 1949 times)

Texan

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Best fund for a older/simpler man?
« on: January 15, 2015, 05:32:32 AM »
My dad is currently 62, with just over $100k in his traditional IRA and is in 4 different Fidelity funds which each have exp ratios of over .56% . Naturally I offered to help him get into Vanguard and he watched a Jack Bogle Interview with me and seems hooked.

So, a couple things: he is not scared of risk, he doesn't plan on touching the money and he wants good returns.

I might put him into the VASGX fund with vanguard. Is this a good "set it and forget" fund? I realize no fund is totally like this, but he does not know anything about rebalancing, fees etc.. He just wants to experience the magic of Vanguard Indexing. Which fund/funds should I put him into?

LalsConstant

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Re: Best fund for a older/simpler man?
« Reply #1 on: January 15, 2015, 05:46:31 AM »
I am not a financial adviser, but I had to help tackle this problem for someone who wasn't willing to do anything other than put money in an account and forget about it for a few decades.

Ultimately the solution we arrived at was one of Vanguard's targeted date funds.  While I'm skeptical that adjusting the portfolio composition over time actually does what is commonly believed, if one does believe that (and I'm not saying that's wrong just that I don't know), these were the least objectionable "all in one" funds that follow the typical Boglehead investment strategy.

I dubbed these funds the "85% solution" and probably the best bet for someone who just doesn't want to make a large effort.

However I can't imagine the "Lifestyle" funds are a bad option either, and I can see in this situation you don't necessarily want the shifting allocation strategy and they were my second choice in the situation I was considering, but the person I was helping wanted a fund that would change asset allocations over time so there you go.

A lot of this will come down to what you believe from what you've read about investing, honestly, but I still think Vanguard's "all in one" funds are probably the best deal going out there for people who need this kind of setup.

So if it makes you feel any better, a total non expert, who has tackled the same problem, and whose only credentials include reading at least two investing books per year and browsing lots of sites when it strikes his fancy agrees that's as good of a choice as any, if it suits his temperament for risk.

Dodge

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Re: Best fund for a older/simpler man?
« Reply #2 on: January 15, 2015, 07:09:27 AM »
My dad is currently 62, with just over $100k in his traditional IRA and is in 4 different Fidelity funds which each have exp ratios of over .56% . Naturally I offered to help him get into Vanguard and he watched a Jack Bogle Interview with me and seems hooked.

So, a couple things: he is not scared of risk, he doesn't plan on touching the money and he wants good returns.

I might put him into the VASGX fund with vanguard. Is this a good "set it and forget" fund? I realize no fund is totally like this, but he does not know anything about rebalancing, fees etc.. He just wants to experience the magic of Vanguard Indexing. Which fund/funds should I put him into?

Either a target date fund, or a lifestyle fund.  They are both fully automatic and 100% "set and forget".

GGNoob

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Re: Best fund for a older/simpler man?
« Reply #3 on: January 15, 2015, 07:09:59 AM »
My dad is currently 62, with just over $100k in his traditional IRA and is in 4 different Fidelity funds which each have exp ratios of over .56% . Naturally I offered to help him get into Vanguard and he watched a Jack Bogle Interview with me and seems hooked.

So, a couple things: he is not scared of risk, he doesn't plan on touching the money and he wants good returns.

I might put him into the VASGX fund with vanguard. Is this a good "set it and forget" fund? I realize no fund is totally like this, but he does not know anything about rebalancing, fees etc.. He just wants to experience the magic of Vanguard Indexing. Which fund/funds should I put him into?

If he never plans on touching this money, VASGX is probably the perfect fund. Otherwise, if that money would eventually be yours, then the better choice may be a Target Retirement fund with your estimated retirement date (or one invested to your risk tolerance).