Vanguard Target Retirement Funds have drawn a lot of criticism over the years for not having good self investment options for the average investor. I believe there are two main reasons for this. First, there is no face-to-face interaction between the financial advisor and client; second, the advisors are mostly older and lack the depth of experience required to truly perform as competent advisors for retirement plans. Now these are my opinions, and you should do your research and determine if these may apply to you or not.
Bogleheads Vanguard Target Retirement Funds
I believe the major drawback with Bogleheads is that they are not really a guaranteed result when it comes to investments in retirement funds. This is especially true in the Bogleheads VULpes fund. The fund is supposed to emulate the behaviors of the aging population and invest in both index funds and stocks so that you build a good average retirement income through both methods. Sadly, none of these methods pan out very well for most people, and the VULpes has been a high turnover fund due to this issue.
The thing about the Bogleheads is that they are supposedly conservative and fiscally responsible. They also offer very good options for index funds, as well as good stocks. I think in order to pull out a good average result with any retirement funds, you need to be in good shape and know what you’re doing. Bogleheads might help you do just that.
The thing is, while the Bogleheads do pull out a very good return on their investing efforts, they do age very quickly, and since they are investing with index funds, they often do not have a very good return. And since the VULpes has been a high turnover fund, you can also assume that these people have had a few other experiences with retirement funds before joining up with Bogleheads. I also wouldn’t expect the Bogleheads to pull out a top return with a bond fund or some sort of real investment like that.
Now one good thing about the Bogleheads is that they tend to stick to just about any fund type available. This means that you should be able to find funds that you like from this group. It also means that you shouldn’t have to pay too much out-of-pocket to get started. Unlike other retirement funds, where you might find that things change and it makes more sense to try a few different types of funds before settling on something, this group is fairly tight-lipped about their rates.
It is probably fair to say that most people will find that the Bogleheads are somewhat harder to get into than other funds, but once you are in you should be able to have a good experience with this group. You also might want to look at the Vanguard Group retirement plans. Even though they are a little older, they are still very solid and are known for having very good returns. In this way, you can get a good idea of what to expect from this group as well.