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Is Vanguard LifeStrategy Growth Fund a good 401k option? |
Is Vanguard LifeStrategy Growth Fund a good 401k option? It is a "fund-of-funds" set up to own 80% stocks and 20% bonds. That allocation is more diversified than most funds out there, and diversification in long term investing is generally a good thing. That said, if you are young and not risk-averse, you could invest in more aggressive funds, namely more stock funds, small cap, mid cap, and international funds, and probably do better than this fund will LONG TERM. It's probably one of the better options available in your 401(k). 4 stars from Morningstar, extremely low expense ratio, returns that consistently beat the category (large cap blend) and S&P 500 averages. |
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It's impossible to answer that question without knowing more about your timeframe and risk tolerance. ...It is ok for that purpose, provided you do not put all of your assets into it. No more than 25%. The reason is that the fund is heavily weighted towards large cap U S stocks. You need to be more... You could just go to just about any brokerage to buy that fund. But probably cheaper or nothing to just go straight to Vanguard directly. But you can always go to a discount brokerage and buy and... Its depends on when you need the money and where its being held IE IRA, taxable account. Of the bond funds I like the ultra low tax funds, if this is long term retirement money I still like stocks... Vanguard S&P 500. Vanguard has 0% redemption fee, Etrade has 1% Vanguard expense ratio: 0.18%/0.09% for Admiral shares, Etrade 0.09% Vanguard tracking error: 0.05%, Etrade: 0.79% Winner... If you will have 12% contributions to your 401k, it makes sense to contribute extra savings to a ROTH IRA. This means you will have some money that will be taxed and the ROTH that you can withdraw... I agree: look at the target date funds or "Life Strategy" funds. At the "10-year point," you need some bond (and international stock) exposure that you won't get with the... I am not a great fan of REIT's, but many advisors recommend keepint a constant 5-10% of your stock portfolio in REIT's for diversification. As long as you don't put too much into it... |
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