Author Topic: Vanguard Life Strategy vs. Target 2035 fund  (Read 2685 times)

JodyGirl

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Vanguard Life Strategy vs. Target 2035 fund
« on: July 07, 2014, 02:53:33 PM »
I have 50,000 to invest.  I was going to put it in a Vanguard 2035 fund, but the rep at Vanguard suggested I take a look at the Life Strategy funds---either the 60/40 mix or the 80/20 mix. 

I'm age 51 with limited income potential due to a health situation.  Presently, my two retirement funds (vanguard 2030 and a small one with TIAA-CREF) have about 70,000 between the two places.

I have no debt.  None.  :) 

Thoughts?  Advice?  Experience with any of these funds? 

Thanks.

nereo

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Re: Vanguard Life Strategy vs. Target 2035 fund
« Reply #1 on: July 07, 2014, 06:26:54 PM »
it all depends on what your AA is.  The Target Date 2035 will shift more towards bonds as you get closer to 2035.  The Life Strategy funds will stay at their preset levels.

Overall, either will work, it's just up to you.  Alternatively, you could set your own mix by investing most in a total-market fund and the rest in a bond fund.

JodyGirl

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Re: Vanguard Life Strategy vs. Target 2035 fund
« Reply #2 on: July 07, 2014, 06:48:51 PM »
New to all this.  AA means?  Thanks!

nereo

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Re: Vanguard Life Strategy vs. Target 2035 fund
« Reply #3 on: July 07, 2014, 07:40:30 PM »
sorry.  AA = asset allocation.  Basically a fancy term for how you want to invest your money.
For example, my AA is 95% stocks (most of which is in an SP500 fund, with another international fund), 5% bonds.

In short, you should decide what your AA should be based on your own goals and tolerance for risk. 
If you are new to this all I'd highly recommend checking out hte JH Collins series.  Easy to read and easy to understand: http://jlcollinsnh.com/stock-series/

JodyGirl

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Re: Vanguard Life Strategy vs. Target 2035 fund
« Reply #4 on: July 08, 2014, 10:56:27 AM »
Thanks for the clarification and the link!