I am helping a friend who is recently retired invest their own money. My goal is to use the 4% rule and enable them to withdraw 4% (or a little less) every year indefinitely. They've transferred their 401k to a vanguard IRA, but I am not sure what to tell them to PUT their money in, and right now it is just sitting.
For myself, being young I've just stuck all my funds into the vanguard 2050 retirement* or whatever the furthest out one was, since it's basically all stocks up front anyway. I might change around my funds later when I know more about investing, but for now, it's a hands-off don't worry about it way to know my money is working for me.
For my friend I was thinking some combination of the following maybe?
VTSAX
VTIAX
VBTLX
VTABX
(Or possibly throwing their lot in with the 2050 retirement fund or something)
In short, there's a TON of information and strategies, and I'm just looking for some sound recommendations from the forum providing a possible actionable plan, in some form such as XX% VTSAX, XX%VTIAX. Information regarding why would be helpful. In short, we always talk about the 4% rule, and I don't know how to actually IMPLEMENT it once the money is there.
*Side note, if the 2050 retirement fund is a horrible options for me that'd be good to know as well.