pixel_a_ted wrote:
- quote -

That's why as the OP (or anyone else) gets closer to retirement he
should evaluate his risk tolerance (actually evaluate every year) and
perhaps lighten his stock holdings.

- quote -

Well, I'm 27, today. Even at my ripe, old age, I'm still 100% invested
in stocks. I will be for a long time to come. However, I stick with
the S&P 500. I know a lot of people prefer total stock market indices
(like the increasingly-misnamed Wilshire 5000). I just prefer
large-cap equities.

--Bill

pixel_a_ted wrote:
Others will point out that the stock market
- quote -

I will point out that money invested over 36 years (asssume OP retires
at 62) will grow 520% invested at 5.2% (current 1yr CD) versus 1496%
invested at 8% (my conservative expected return taking into account the
disinflation of the past 25 years).

If the market 'tanks' before OP retires, he'd still have 10 times his
original investment. Analysis shows that risk (volatility) decreases as
larger timespans are taken into account for stock returns. As you exceed
the 10 year period the risk/reward ratios are far in favor of stocks.
JOE
JOETAXPAYER.COM

On Wed, 06 Sep 2006 09:50:15 -0500, flagsposters wrote:
- quote -

I was roughly as aggressive at 27 when I started working as I am now (7
yrs and 1+ children later) -- then, as now, putting almost all money
into stocks. The amounts you talk about are small. Invest them as you see
fit, the choices you mention are not *that* different. In a few years you
will get a better idea how you will react to up and down markets, what is
your risk tolerance, etc. Those lessons are *much* more valuable than the
difference of investing $3000 in one vs the other (and you will not feel
this unless you invest real money).

-- Alex

This may not be a popular response in this forum, but I would point out
that since you are young you can make use of one of the greatest forces
in investing, namely the compounding of interest. You can save in
relatively save investments and take advantage of the growth over a
large number of years. Others will point out that the stock market
provides greater returns (which are also compounded) on average. Also,
the tax treatment of stock gains is better. However, if the market
tanks a few years before you plan to start cashing out, you are
screwed.

What fraction of your investments should be in safe vehicles vs. the
stock market is something that only you can determine. It all depends
on how much you want to save, how much risk you want to take on, etc.

"jIM" <noreplysoccer[at]hotmail.com> wrote
- quote -

No, it's not a wrapper fee. The 0.21% is the current
"average weighted expense ratio" based on the underlying
funds' fees. One does not add on the underlying funds'
expenses to compute the cost of this Vanguard fund.

See also this thread where you said the same thing and
someone pointed out what I point out above:
http://groups.google.com/group/misc....220840b6e1ef32

The OP should also keep an eye on Vanguard's ETF offerings.
They are not as plentiful as its mutual funds, but they're
growing, and their expenses are very competitive. Being
ETFs, they tend to have less restrictions on them compared
to mutual funds.

"jIM" <noreplysoccer[at]hotmail.com> wrote in message
news:1157556907.214876.221340[at]e3g2000cwe.googlegroups.com...
- quote -

Neither Vanguard, Price, nor Fidelity have wrapper fees. (Fidelity did
charge an extra 0.08%, but dropped that a year or so ago.) American Century
seems to charge a 0.20% wrapper fee for investor class shares.
http://www.financegates.com/news/fun...elity1105.html

- quote -

Nope.

Mark Freeland
BnetOnewsX[at]sbcglobal.net

"Elle" <honda.lioness[at]nospam.earthlink.net> wrote in message
news:qOBLg.15830$Qf.4666[at]newsread2.news.pas.earthlink.net...
- quote -

The idea of target maturity funds is that these are "set and forget" funds.
It matters not only what their allocations are now, but what they will be in
the future. These funds have very different trajectories that you need to
consider. (IMHO, Vanguard has been way too conservative, though they
recently overhauled their funds so that they are now merely much too
conservative:-)
http://www.fascore.com/PDF/wisconsin...etter_2Q06.pdf (p. 2 of 4)

If you have in mind changing from one fund to another as you become
dissatisfied with a fund's mix, then you are saying that you don't buy into
the concept of target maturity funds, and they are not for you. In that
case, one would be better off with lifecycle funds (which offer relatively
static mixes of assets) and moving among those over time, or forgetting
about hybrid (mixtures of asset classes) funds altogether.

Mark Freeland
BnetOnewsX[at]sbcglobal.net

flagsposters[at]gmail.com wrote:
- quote -

How agreesive would I be is different from how agressive you'd be.
Each person's risk tolerance is different.


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a FEW lines to add context, the previous post is deleted.

flagsposters[at]gmail.com wrote:
- quote -

I compared using Vanguard's web site.

T Rowe does not have a "wrapper fee" and invests in:

Equity Index 500 Fund
Growth Stock Fund
High Yield Fund
International Growth & Income Fund
International Stock Fund
Mid-Cap Growth Fund
Mid-Cap Value Fund
New Income Fund
Small-Cap Stock Fund
Value Fund

I think some of these funds are excellent, including Mid Cap Growth and
Mid Cap Value. Overall expenses as listed by TRP is .76% which is an
average of fund expenses if I understand correctly.

Vanguard appears to have a wrapper fee of .21% in addition to the fund
expenses. Vanguard 2045 invests in

Vanguard Total Stock Market Index Fund 71.9%
Vanguard European Stock Index Fund 10.9%
Vanguard Total Bond Market Index Fund 9.8%
Vanguard Pacific Stock Index Fund 5.1%
Vanguard Emerging Markets Stock Index Fund 2.3%

I don't see how terrorism fits in to either of above. If a terrorist
attack comes, both will go down. One could argue that because
Vanguard's fund has international offerings, a terrorist attack might
affect it more.

TRP will let you open the account with $50 if you sign up for asset
builder which adds $50 each month. I do not know if Vanguard has the
same service.

disclaimer:
I own the following funds:

TRP Mid Cap Growth (Roth IRA)
Vanguard Extended Market index (401k)

The allocation percentages you give are only rough goals.
Right now, the T Rowe Price web sites says TRRKX (its 2045
fund) is about 90% stocks, and the rest bond/fixed income.
Vanguard's site for VTIVX (the Vanguard 2045 fund) indicates
at the moment it too is holding about 90% stocks and the
rest bond/fixed income. IOW, you're kind of splitting hairs
with regard to these two funds' allocations.

TRRKX has an expense ratio of 0.76%.
VTIVX's expense ratio is 0.21%.

That may not seem like much, but in fact it adds to quite a
lot over some 40 years of investing. I would go with VTIVX.

The best way to identify fees is to go to the company's web
site and look up the fund, then confirm the fees with a
prospectus. Large mutual fund company web sites have become
very complete and thorough, in the name of getting
information out to consumers and so remaining competitive.
It will behoove you to learn how to surf these sites
quickly, if you haven't explored some already.

Hey folks,
I am 26 years old and looking at two retirement stock options:

1.) Vanguard Target Retirement 2045 which allocates 88% in stocks

2.) T.Rowe Price 2045 which allocates 94% in stocks

My questions:

If you were 26 today, which one would you go for? I am interested in
T.Rowe Price because it seems a bit more aggressive, but I am also a
bit leary of terrorism.

I know that Vanguard is the best, but I am attracted to T.Rowe Price
becuase it's more aggressive AND is a cheaper initial investment (2,500
vs Vanguard's 3,000). However, I don't mind just waiting to gather the
extra $500 for Vanguard's higher initial fee.

Does anyone know if T.Rowe has more expenses and fees than Vanguard? I
just never hear anyone talk about them in these groups, so just
wondering if I should avoid them.

Thanks for any info!