Comments on: The best deal in America: the target-date retirement fund http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/ Your personal finance advocate—putting consumers first! Sat, 28 May 2011 14:35:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jane http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-8470 Jane Fri, 28 Jan 2011 15:07:19 +0000 http://janebryantquinn.com/?p=1231#comment-8470 It's safe to keep your money in a single mutual fund company. Your diversification is having the money held in different funds. Each fund keeps the money in a separate trust. It's not mingled with the corporate money. It’s safe to keep your money in a single mutual fund company. Your diversification is having the money held in different funds. Each fund keeps the money in a separate trust. It’s not mingled with the corporate money.

]]> By: kathy http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-8094 kathy Wed, 19 Jan 2011 15:02:53 +0000 http://janebryantquinn.com/?p=1231#comment-8094 Is it safe to put all your money with one company (for example - Vanguard or Fidelity) or should we divide it between two or three companies? We will be needing this money to live on as we retire and really can't afford to have it tied up if there is trouble at the company we are using. We have seen too many companies get into trouble - AIG, Enron, savings and loan banks, Madoff, etc - that appear to have good reputations. Is it safe to put all your money with one company (for example – Vanguard or Fidelity) or should we divide it between two or three companies? We will be needing this money to live on as we retire and really can’t afford to have it tied up if there is trouble at the company we are using. We have seen too many companies get into trouble – AIG, Enron, savings and loan banks, Madoff, etc – that appear to have good reputations.

]]> By: Jane http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-7954 Jane Sun, 16 Jan 2011 07:46:43 +0000 http://janebryantquinn.com/?p=1231#comment-7954 But would you manually rebalance? All the time? And when? But would you manually rebalance? All the time? And when?

]]> By: David S. http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-7922 David S. Sat, 15 Jan 2011 09:04:22 +0000 http://janebryantquinn.com/?p=1231#comment-7922 I agree that target date funds, particularly Vanguard's, are fantastic. The expense ratio of Vanguard Target Retirement 2030 is 0.19%. However, if you invested in Admiral Shares of the underlying funds instead, your expense ratio would be 0.1%. Now that the minimum balance for Admiral shares has been reduced to $10,000, doesn't it make more sense to invest in the underlying funds once you have enough assets? The money you would save would more than compensate you for the hassle of manually rebalancing. I agree that target date funds, particularly Vanguard’s, are fantastic. The expense ratio of Vanguard Target Retirement 2030 is 0.19%. However, if you invested in Admiral Shares of the underlying funds instead, your expense ratio would be 0.1%. Now that the minimum balance for Admiral shares has been reduced to $10,000, doesn’t it make more sense to invest in the underlying funds once you have enough assets? The money you would save would more than compensate you for the hassle of manually rebalancing.

]]> By: Jane http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-6065 Jane Sat, 04 Dec 2010 18:34:28 +0000 http://janebryantquinn.com/?p=1231#comment-6065 I'd opt for the fund that's closer to your 65th birthday, because it will own a higher percentage of stocks and you might have 45 years ahead of you. This assumes that you have enough income so that you don't have to withdraw much (if any) money from the fund when the market is down, or that you withdrew no more than 4 percent in 2009 and are now withdrawing that same 4 percent plus each year's annual inflation rate. I’d opt for the fund that’s closer to your 65th birthday, because it will own a higher percentage of stocks and you might have 45 years ahead of you. This assumes that you have enough income so that you don’t have to withdraw much (if any) money from the fund when the market is down, or that you withdrew no more than 4 percent in 2009 and are now withdrawing that same 4 percent plus each year’s annual inflation rate.

]]> By: Jane http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-6062 Jane Sat, 04 Dec 2010 18:20:30 +0000 http://janebryantquinn.com/?p=1231#comment-6062 You could put all of your savings there. The funds are allocated across US and international stocks and bonds, in amounts appropriate for your age, and rebalanced regularly. What would you do on the outside that's better than this? You could put all of your savings there. The funds are allocated across US and international stocks and bonds, in amounts appropriate for your age, and rebalanced regularly. What would you do on the outside that’s better than this?

]]> By: Vince Rosenthal http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-5990 Vince Rosenthal Thu, 02 Dec 2010 21:26:33 +0000 http://janebryantquinn.com/?p=1231#comment-5990 JBQ - what percent of ones retirement savings do you advocate in these target funds? Thanks JVR JBQ – what percent of ones retirement savings do you advocate in these target funds?
Thanks
JVR

]]> By: Mike Walsh http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-5933 Mike Walsh Wed, 01 Dec 2010 03:58:34 +0000 http://janebryantquinn.com/?p=1231#comment-5933 Hi Jane, I retired in 2009 at age 55. Should I invest in the Vanguard Target Retirement Fund for folks who are already retired, or choose their Target Retirement 2020 Fund which is closest to my 65th birthday even though I will have no more earned income, please? Thank you for all the wonderful advice. Mike Hi Jane,

I retired in 2009 at age 55. Should I invest in the Vanguard Target Retirement Fund for folks who are already retired, or choose their Target Retirement 2020 Fund which is closest to my 65th birthday even though I will have no more earned income, please? Thank you for all the wonderful advice.

Mike

]]> By: Jane http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-5867 Jane Sun, 28 Nov 2010 17:43:25 +0000 http://janebryantquinn.com/?p=1231#comment-5867 Hi Roger, I don't give individual recommendations. I suggest that you consider dividend funds and balanced stock-and-bond funds, as well as bond funds. Hi Roger, I don’t give individual recommendations. I suggest that you consider dividend funds and balanced stock-and-bond funds, as well as bond funds.

]]> By: Roger http://janebryantquinn.com/2010/07/the-best-deal-in-america-the-target-date-retirement-fund/comment-page-1/#comment-5815 Roger Sat, 27 Nov 2010 12:46:21 +0000 http://janebryantquinn.com/?p=1231#comment-5815 Hi Jane, I am in retirememnt, could you steer me into a couple of good income funds? Thanks Roger Hi Jane,

I am in retirememnt, could you steer me into a couple of good income funds?

Thanks

Roger

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