Simple, low-cost investments that won’t lead you astray
If you’re retired or on the brink of retirement and you want a relatively simple low-cost investment that won’t lead you astray, your search should start with Vanguard mutual funds.
Let me be clear: This article isn’t a sales pitch. I don’t work for Vanguard and I have no affiliation with the company except as a shareholder in their funds.
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Vanguard Short-Term Investment Grade Fund VFSUX
Vanguard Target Retirement 2015 VTXVX
LifeStrategy Income Fund VASIX, +0.46% typically holds only about 20% of its portfolio in equity funds, with the rest in bonds, perhaps a good fit for investors with ample resources (more than they think they’ll ever need, in other words) and those who are very skittish about the stock market.
LifeStrategy Conservative Growth VSCGX doubles that equity stake to about 40%, perhaps the right choice for conservative retirees who want some growth but are not willing to go very far out on a limb to get it.
LifeStrategy Moderate Growth VSMGX is very similar, but with a 60/40 split of equities and bonds. This provides more growth, although still without much excitement.
Two funds for retirees who don’t know a lot about investing
Often over the past 20 years I have recommended Vanguard Wellesley Income Fund VWIAX and/or Vanguard Wellington Fund VWENX.
For conservative retirees that I don’t know well, Wellesley has become what I regard as my best piece of advice.
Random stuff I find interesting and you may not.
