Going to max out my retirement, and here’s where the money is going and its asset allocation:
Vanguard 500 Index Signal — 45 %
- MER: 0.6%
- Return Since Inception: 3.17%
Vanguard Balanced Index Signal — 45%
- MER: 0.12%
- Return Since Inception: 5.44%
Selected American Shares D — 5%
- MER: 0.6%
- Return Since Inception: 4.47%
Invesco Stable Value — 5%
- MER: 0.2%
- Return: 5.39%
HOW I DECIDED
- Betting on the American economy to bounce back — I am very confident here
- Looked at MER (management expense ratios) for the cheap ones
- Looked at their returns since inception (good range covering the highs & lows of economy)
- Looked at the stocks the fund was made up of — big ones, etc
- Kept in a moderate risk frame of mind for now — I can always change later
I am interested in returns, but I think just a moderate return is fine for a retirement plan.
I like a “set it and forget it” sort of thing, but I don’t want the expenses of an actively managed fund where they target your retirement date and shift the assets into bonds as you age.
WHAT I MAY DO IN THE FUTURE
Change a few funds. I am going to do more research (it was a quick, 1-hour scan and pick situation), and re-allocate as I see fit.
I am also going to be moving my money over here, so I need to figure out if I want to put my money into the same brokerage, or go with Vanguard directly.