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][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'm the PP who suggested VSVNX.  You are right that target date funds are less tax-efficient and would generally not be the best option for taxable investments.

However, (1) a fund that is 91% stock funds, there won't be much impact (regardless of the total amount of $$ in the account) vs., let's say, a 50-50 or bond-heavy balanced fund, and (2) OP asked for a single fund, so I think this is the best for OP's request.

I also think, in general, the perfect is the enemy of the good.  OP is better off having some balance vs. going all stocks or getting overly complicated.[/quote]

This. In fact this the perfect option for OP since he is starting so late. He likely has about 20 years of investing left and this fund is probably not going to trigger a tax surprise in 10 years because it will still be stock heavy then.[/quote]

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