Reply to Would you go 100% VT after maxing out Roth if you have a pension and start investing at 45?

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Reply to "Would you go 100% VT after maxing out Roth if you have a pension and start investing at 45?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]With no SS, and therefore a "shortfall" of about $20k/yr on expected annual expenses, you might consider a very aggressive target-date fund that still has some (but not much) bond allocation.

For example, VSVNX (Vanguard's 2070 fund) is about 91% stock funds.  That's a lot of risk/return, but not 100%.

The 2070 fund will gradually get more conservative with its balance, but it will always have more risk/return than a target-date fund that is closer to your actual retirement date.  So you could probably just stay in VSVNX indefinitely, if you like that approach.[/quote]

Interesting. Not OP. Some people say its not a good idea to have target funds in a taxable because of possible "surprising" tax liability triggered events. Or, perhaps do you think in OP's case since he is starting so late and unlikely to have huge sum of money any such tax event is unlikely to be a big hit?[/quote]

I have heard this as well, but honestly I think its overblown. People take their tax optimization scheme to the extreme sometimes. Despite the fact they are less tax efficient, for people like OP a target date fund fits the bill perfectly. [/quote]

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