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3 alarm funds?

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  • #16
    Re: 3 alarm funds?

    Another suggestion you might want to consider...Instead of having two different funds for small-caps you could go with a small-cap blend index and combine them. You could also do the same with the large-caps and consolidate those two into an S&P 500 index.

    If you were to put the 10% you had in the stock annunity into the int'l index and kept the 30% bond allocation and everthing else the same, you would have 20% int'l, 27% small-cap and 17% mid-cap exposure.

    Then, if you were to combine the two small-caps into a small-cap blend index and just have that be 10% and put the other 10% in an S&P 500 index you would still have 20% int'l and 17% mid-cap but knock down the small-caps to 14% which might be a better fit for you if you would want a little less volatility. It would look like this with using all indexes...

    10% large cap value
    10% large cap growth
    10% S&P 500
    10% small cap blend
    20% int'l
    10% real estate
    30% bond

    Again, if you didn't want to hold all of that you could combine the large-caps into the S&P and get a blend that way. Holding all three would cause a lot of duplicate holdings but if you like it that way that's fine.
    The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
    - Demosthenes

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    • #17
      Re: 3 alarm funds?

      One of the reasons that the Target Date funds were created were for people exactly like you who don't have the time to get into all this mumbo-jumbo! It's the 'set it and forget it' form of investing.

      If the risk in your specific retirement timeline is too high or too low for you then just go up or back a few years and stick it in there until your life slows down enough to get yourself at least minimally up to speed. There is a lot to learn about investing and some of it has been specifically made difficult for us average joes and janes in the past, although the internet is making it better.

      You may be set on Vanguard but Fidelity has a very decent little fund called the Four-In-One that covers a wide world of indexes.

      Keep reading and keep asking questions. After a while the fog does begin to clear!!

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      • #18
        Re: 3 alarm funds?

        Thanks.

        Im pretty sure I can transfer funds to others with out fees. But yes, I need to be sure.
        I also need to research more about why Variable Annuities are a disadvantage.
        But what I was asking is which straight mutual fund would replace , or be in the same class designation as my CREF Variable Annuity Fixed Income Bond Market? Would the Western Asset Core Plus Bond Instl WACPX do that and be a better choice?

        Iv been told that the CREF Variable Annuity Growth was a bad choice or "a dog". But since T.C. is a non profit organization. Why would they steer me wrong?

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