Author Topic: Switching to Vanguard 403B, help me choose  (Read 2184 times)

aceyou

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Switching to Vanguard 403B, help me choose
« on: October 14, 2015, 04:21:23 PM »
Hello Everyone,

I need your help picking Vanguard index funds...how fun is this! 

I'm going to start putting money into my 403B through my employer.  I can either invest through their actively managed accounts (for a fee), or I can pick my own index funds, and pay a little under 0.5% in total costs. My plan is manage the account myself.

What would be a good allocation of funds that would allow me to be somewhat diversified into different markets.  Basically, where do I begin? 

Any help will be appreciated. 

crazy jane

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Re: Switching to Vanguard 403B, help me choose
« Reply #1 on: October 14, 2015, 05:06:44 PM »
The three fund portfolio thread on Boggleheads.

seattlecyclone

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Re: Switching to Vanguard 403B, help me choose
« Reply #2 on: October 14, 2015, 05:40:57 PM »
Which Vanguard funds are available in your 403(b)? What is your desired asset allocation? The answers to those two questions should help inform this decision.

aceyou

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Re: Switching to Vanguard 403B, help me choose
« Reply #3 on: October 14, 2015, 08:56:14 PM »
The three fund portfolio thread on Boggleheads.

Ok, I checked it out.  I'd consider using the following three if I did this strategy:

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
Vanguard Total Intl Stock Index Inv  VGTSX
Vanguard Total Bond Market Index Adm  VBTLX

What does the MMM community say about this?  Can I find a better set of funds through Vanguard?  Would Fidelity Spartan funds be better, because I can get them too? 

Also, once I decide on the funds, how do I decide what percentage of each to buy?  I'm 32 years old and am very open to risk.  My wife and I are both likely to receive a substantial pension, and we have 80K equity in a house, about 100,000 in cash, a 26,000 innuity, and 13,000 in bonds (I just started learning about investing a year ago and have been going about it all wrong up to this point.  The only thing my wife and I have done well is the fact that we spend less than we earn). 


aceyou

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Re: Switching to Vanguard 403B, help me choose
« Reply #4 on: October 14, 2015, 08:57:06 PM »
Which Vanguard funds are available in your 403(b)? What is your desired asset allocation? The answers to those two questions should help inform this decision.

Given my previous post, what do would you advice my desired asset allocation to be?

MDM

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Re: Switching to Vanguard 403B, help me choose
« Reply #5 on: October 14, 2015, 09:09:34 PM »
Which Vanguard funds are available in your 403(b)? What is your desired asset allocation? The answers to those two questions should help inform this decision.
Given my previous post, what do would you advice my desired asset allocation to be?

As noted in https://www.bogleheads.org/wiki/Three-fund_portfolio:
Quote
You must decide for yourself what percentage of stocks to hold, based in part on your personal risk tolerance. There are no shortcuts and and it needs to be done no matter what investment approach you are using.

For a first throw at the dartboard: VTSAX = 65%, VGTSX = 25%, VBTLX = 10%.  If you are comfortable with those numbers, they may be right for you.  If you are not comfortable, they probably aren't.

aceyou

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Re: Switching to Vanguard 403B, help me choose
« Reply #6 on: October 15, 2015, 11:41:53 AM »
What do you think about the following Allocation? 

VTSAX = 65%
VTIAX =  30%
VTBLX = 5%

This would be considered a fairly aggressive portfolio, right?

Furthermore, can someone verify that VTIAX is more aggressive than VTSAX?

seattlecyclone

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Re: Switching to Vanguard 403B, help me choose
« Reply #7 on: October 15, 2015, 11:59:13 AM »
Furthermore, can someone verify that VTIAX is more aggressive than VTSAX?

VTSAX is for the US stock market. VTIAX is for the international stock market. To the extent that other countries have more (or less) volatile stock markets than the US, it would be a more (or less) aggressive investment.