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Investment advice sought

Alex
in Fund Discussions
Dear MFO family, I am an 87 year old retiree with a mid-six figure account with Vanguard Money Market IRA. I am planning to leave this to my two children ages 65 and 55 respectively . I can't transfer the account to them yet without incurring substantial taxes and so I want to continue investing the funds in my account but for their benefit I want have it grow some rather than just sit in MM.
I spoke to two different "advisors" and was disillusioned by their recommendations. I have already cautioned my heirs to consult a good CFP to enable them to transfer my IRA into an inherited IRA.
Can anyone suggest one or two Vanguard funds to slowly grow and calm my fears? Thank you all for your past wisdom which helped me build my estate.

Comments

  • TedTed
    edited August 2016
    @Alex: And here I thought I was the oldest, at 80, on the MFO Board. Look at the following funds.
    Total Stock Market Index: (VTSAX)
    Totlal Bond Market Index: (VBTLX)
    Vanguard Wellington: (VWELX)
    Vanguard Wellesley : (VWINX)
    If Your In The 32% Tax Bracket:
    VWLTX
    Regards,
    Ted
  • PRESSmUPPRESSmUP
    Hi Alex,

    Wanting it to "grow some" means different things to different people. If that means 3%, a short term bond fund could fit the bill. If you're looking for more, then equities enter the picture.

    Given the current market, your parameters, and with no further information on your specific situation, I think Ted's recommendation of either VWELX or VWINX makes a lot of sense assuming this is in an IRA. VTMFX if in a taxable account.

    press



  • TSP_TransferTSP_Transfer
    @Ted said And here I thought I was the oldest, at 80, on the MFO Board.

    Hey,look what we have to look forward to besides Balanced Funds !

    Tweet from former Michigan congressman Charles Dingell: “Everything’s a balance beam when you’re 90.’’

    Follow
    John Dingell ✔ @JohnDingell
    Everything's a balance beam when you're 90.
    10:34 PM - 7 Aug 2016
    http://www.chicagotribune.com/sports/rosenblog/ct-alshon-jeffery-john-fox-rosenbloom-20160808-column.html
  • Alex
    Thank you both Ted and PressMup for your very useful advice. I own a small position in VDGIX Vanguard dividend growth fund which has been a satisfactory performer But I keep reading articles saying that dividend growth has its best days behind it. any comments? THX
  • davidrmorandavidrmoran
    Ignore articles like that.

    Any good balanced fund will do; you do not need adviser advice. There was just a recent thread about balanced funds, mentioning several of the Vang ones as well as others.
    Any of the above Vang recommendations are good and you can do even simpler just by using a single one of their vehicles, balanced fund or all-stock. You can do the same with other brokerages too, TRP, Schwab, Fidelity --- it does not have to be Vanguard.

    Some etfs that cover everything with diversity and different ratios of equities to fixed are AOA, AOR, AOM, and AOK. Passive, cheap, and diversified.
  • Alex
    Hi Ted and PressMup, Thank you both for your good advice. I am selecting two or three of them. I wonder if I should do it now or wait till after the circus leaves town in November. Any thoughts?
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