Retirement Income

[Top Water Huff]

I am new to investing and I have some money that I need to use to supplement my retirement income. I am 61YO and will be retiring anytime from Jan 2022 to June 2025. I am debt free. I am looking at the Vanguard Target Retirement Mutual funds VTINX and VTTVX, any thoughts?

Thanks

[Charles Prestridge]

I have never chosen a Target-Date fund. The ones I have looked at, did not have a good history of returns vs. other funds.

I “think” (so be careful), they do not have enough growth with a 30 plus year target retirement and they are too conservative with a 5-10 year target retirement. CD’s and bonds are paying so little, they are not much of an option at this time.

I think it is better to pick 3-4 funds and diversify based on your needs/comfort level.

In several recent posts, you can see where funds like Dodge & Cox Income, TRowePrice Dividend Growth, and others like this can be used for some of your more conservative investing.

Likely, still want to invest some portion in a good Stock Index Fund, to have some savings in more long-term growth.

Then, you may want some invested even more conservative in some bonds or something like that.

I think you can still keep it simple and do better than “computer-generated” target retirement funds.

[NitroZ7]

As stated above some target date funds may come up short as they tend to end up being mostly bond exposure as time goes on. That could be good or bad depending on where interest rates go. I do think Vanguard is a good choice though. Those low fees will save you money over time. I have a Vanguard Balanced Fund VBAIX that has done well while still fairly conservative.

[Charles Prestridge]

Definitely study Nitro’s posts and comments.

He is managing an estate required to distribute a set amount each year and grow fund over long-term.

This is similar to a retiree needing monthly income with a goal to not run out of money, or have money left over for children to inherit.

[Top Water Huff]

Thanks for the help, it is appreciated. I will definitely consider everything that was mentioned.