WAY OT ~ Vanguard funds

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I've got to put some money (> $5k but less than $10k) in a IRA to avoid Fed income taxes
Anyone have a suggestion on which Vanguard fund they would pick?
Sorry for the OT post and my lack of $ knowledge. I've got until April 15.
Jim
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On 4/7/12 7:01 PM, gonjah wrote:

You might look at their Balanced Index Fund. http://tinyurl.com/6y3e62 It splits the money roughly 60% stocks and 40% bonds.
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On 4/7/12 8:01 PM, gonjah wrote:

I would suggest parking the money in their Money Market ( VMMXX ) fund at first. You can move it around later when you have more time to research something to your liking.
https://personal.vanguard.com/us/funds/snapshot?FundId 30&FundIntExt=INT
for a more targeted forum for investing, try http://www.city-data.com/forum/investing /
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gonjah <gonjah.net> wrote:

You put money in determined by the markets. I don't think things are going to get better any time soon. Right now I would remain mostly cautious. Stick half in vanguard retirement fund. Put the other half in whatever year your retiring, like vanguard retirement 2020 .
Greg
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On 4/7/2012 7:44 PM, gregz wrote:

Wow. I had no idea that's what those numbers meant. Do you know what Expense Ratio I should be looking at?
BTW: I'm 57 and my wife is 52.
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gonjah <gonjah.net> wrote:

I would have to look up expense ratio ??
Greg
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On 4/7/2012 9:07 PM, gregz wrote:

I think it has to do with the cost of administering the fund.
"Definition of 'Expense Ratio'
A measure of what it costs an investment company to operate amutualfund <http://www.investopedia.com/terms/e/expenseratio.asp# . An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors."
Sorry for the sloppy cut and paste. :(
The Vanguard site has some info I need to review too.
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"gonjah" <gonjah.net> wrote in message

In most places, banks offer free investment advice (albeit probably biased towards bank-owned funds.) The point is that the adviser can explain technical terms on the spot, and you have the right to require that all costs be identified. In exchange, you must decide about "risk" in terms the bank understands.
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Carlsbad Springs
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Don Phillipson wrote:

I read that in Canada the lowest cost mutual funds tend to be those from banks, but in the US the situation is the opposite. Here the typical financial adviser working in a bank is an independent seller who rents office space from the bank and sells load funds. This is usually also the situation with credit unions, which is really bad because customers think credit unions are nonprofit organizations that hold the customers' interests foremost. One of those sales people in a bank once told me that an S&P 500 index fund with a 0.88% expense ratio and 5% sales load was a bargain because so little of the expense ratio went to management fees, and a 5% commission for a $10,000 investment was a cheap price for the advice I'd be getting.
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On Apr 7, 5:01pm, gonjah <gonjah.net> wrote:

Don't rush into anything. If you don't know what fund you want now, just pick the Vanguard Prime Money Market fund because that way you'll satisfy the IRS for 2011 and will be in a very safe investment. You can switch to different Vanguard funds later on. A book like Bogle on Mutual Funds, by Vanguard founder Jack Bogle, can help you select funds for your needs.
Don't try to select funds according to ratings or performance because that hasn't worked well. It's a lot more important to select the right types of funds and proportions of them and to keep your costs (expense ratios) low.
Also good for information is the BogleHeads.org forum , and Morningstar.com has several forums, including one for just Vanguard funds:
http://socialize.morningstar.com/NewSocialize/forums/default.aspx
I strongly suggest you take a look at how different types of funds have done in the past by going to Morningstar and graphing VTSMX (total US stock market), VBMFX (total US bond market), and VGTSX (total foreign stock market). Specify the maximum time period, and don't just look at the default graph that displays growth of $10,000 but also the share price graph as well (choose the "growth" button to bring up growth, price, and volatility graphs). You also want to see the share prices graph to get an idea of the ups and downs -- notice that the bond fund's share price has been much more steady than those of the stock funds. You can choose a mix some or all these funds or even buy all 3 funds packaged together, in different proportions of stocks vs. bonds, with Vanguard's Target date funds.
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I selected according to performance, and made a bundle. Timing is of upmost importance.
Greg

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On 4/7/2012 9:07 PM, gregz wrote:

For now I'll probably follow your advice. I can move it around later "the stooges" said.
I think I'm afraid I'll forget about it and get stuck with a tax bill.
My wife has a much larger sum in there I need to review too.

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gonjah <gonjah.net> wrote:

Go for it. !!! Before I started moving money around I was scared. I was moving money around while I was still working. I ran into a situation last summer, after retirement, that I did not see exactly why I could not transfer like I wanted too. That cost me some money. There are limitations on returning to previously owned funds. Usually a three month wait.
Greg

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On 4/7/2012 10:41 PM, gregz wrote:

That's good to know. Thanks!
Jim
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In article
,

Check to make sure it it only previously owned funds. Most now a days have some hit for selling for any reason in the first 90 days. They don't want frequent traders running up the costs for everyone else/
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In article

Over the long run, given his age and life expectancy, 30 years or so is still the long run, timing sucks according to all the studies. The only time time has anything to do with my investing for retirement is every 6 months when I rebalance. Other than that, I keep an eye on their Morningstar rating and bail when it hits 3.
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gregz wrote:

For the vast majority of people, not really because the success rate for timing has been so low y wouldn't suffer if they took it for granite, for all intensive purposes.
The Hulbert Financial Digest, which has been tracking hundreds of investment newsletters since the 1980s, has found that the vast majority of market timing newsletters have done worse than the overall stock market, including the newsletters written by people who have CFAs or financial PhDs and who know how to spell "utmost" correctly. Worse, the timers have usually lagged the market even when risk is factored, which is surprising because timers tend to go to cash (money market funds) when they feel the market is going to fall, and cash has lower risk than stocks. Here's one of Hulbert's old NY Times columns about this:
http://www.nytimes.com/2010/04/11/business/mutfund/11stra.html
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On Sat, 07 Apr 2012 19:01:48 -0500, gonjah <gonjah.net> wrote:

It's called the Doug fund and I can give you the address to mail to. And the advantage to this fund is you can give money all year around.
Seriously I don't know. I let my cpa wife handle this stuff but I thought there were some decent sites that might help answer this type question. I forgot the names right now but I'm sure google will bring them up. Oh yeah... one is motley fool.
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On 4/8/2012 6:48 AM, Doug wrote:

Yup. Having a CPA for a wife is a real plus.
My wife trusts me. BBA <gawk> I didn't want to spend one more second in a classroom. I haven't opened a serious financial text since graduation. I'd much rather watch paint dry,.
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On Sun, 08 Apr 2012 11:59:52 -0500, gonjah <gonjah.net> wrote:

Well put. I tend to agree with you ...and watching paint dry probably would be exciting vs. my normal daily events :(
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