Author Topic: Variable Vanguard Annuity Allocation  (Read 2414 times)

plb2071

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Variable Vanguard Annuity Allocation
« on: July 02, 2014, 04:42:03 PM »
In 2007, a relative of mine purchased an annuity for me as a gift. The annuity which I have, with Transamerica, has since expired. Being that I already have the annuity, I have 2 choices, cash it out or move it into another annuity. I obviously do not wish to cash it out as I would be smacked with a 10% Tax Penalty. So, I am going with the other choice of moving it into a Vanguard Annuity.

With regard to putting together an asset allocation for the annuity, I was not sure of which funds to choose, as I desired a very aggressive portfolio (a 100% stock allocation)  These are the funds that are in the Vanguard Variable Annuity.

VVA-Balanced (0069)   
VVA-Capital Growth   (0603)   
VVA-Conserv Allocation   (0801)   
VVA-Diversified Value   (0145)   
VVA-Equity Income   (0008)   
VVA-Equity Index   (0068)   
VVA-Growth   (0010)   
VVA-High Yield Bond   (0146)   
VVA-International   (0086)   
VVA-Mid-Cap Index   (0143)   
VVA-Moderate Allocation   (0803)   
VVA-Money Market   (0064)   
VVA-REIT Index   (0147)   
VVA-Short-Term Invest-Gr   (0144)   
VVA-Small Company Growth   (0160)   
VVA-Total Bond Market Idx   (0067)   
VVA-Ttl Stock Market Idx   (0604)

Of the 17 funds in this annuity, my friend suggested that I allocate the following funds in this fashion:

30% VVA Capital Growth (0603)
15% VVA Diversified Value (0145)
8% Mid-Cap Index Portfolio (0143)
7% Small Company Growth (0160)
30% VVA International (0086)
10% REIT (0147)

He also suggested, before I invest, to ask for other opinions and so, here I am. I would appreciate any other feedback.

TomTX

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Re: Variable Vanguard Annuity Allocation
« Reply #1 on: July 02, 2014, 08:14:22 PM »
How much money is it? That seems like a very complex asset allocation.

I'd personally just drop it in the total stock market and be done with it.

foobar

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Re: Variable Vanguard Annuity Allocation
« Reply #2 on: July 02, 2014, 08:54:34 PM »
My first thought it to shove as many reits and bonds into it as you would like to hold across your whole AA. After that shove in those high yielding value funds.

But you really can't go wrong with just going 70/30 TSM/TISM or even 100% TSM.  I am not a big fan of small growth. I would go with the mid cap instead. And yeah I know small growth as a category has done well the past 10 or so years.

How much money is it? That seems like a very complex asset allocation.

I'd personally just drop it in the total stock market and be done with it.

plb2071

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Re: Variable Vanguard Annuity Allocation
« Reply #3 on: July 03, 2014, 09:22:23 AM »
How much money is it? That seems like a very complex asset allocation.

I'd personally just drop it in the total stock market and be done with it.

a little over $12000