Is VFIAX a good retirement fund? (2024)

Is VFIAX a good retirement fund?

Vanguard touts VFIAX — established in 1976 — as “the industry's first index fund for individual investors.” The exceedingly low expense ratio of just 0.04% makes it an exceptional fund for retirement. VSVNX is just one of a series of 12 actively managed, target-date retirement funds offered by Vanguard.

Is VFIAX good for retirees?

Vanguard Growth & Income Fund (VGIAX)

This is a classic core holding for a retirement portfolio, and the fund offers excellent diversification, holding roughly 890 stocks. VGIAX's one-two punch of investment goals helped it beat the overall stock market in 2022 and 2023.

What Vanguard fund is best for retirees?

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) VTSAX is a well-established mutual fund designed to give retail investors – especially those saving for retirement – full exposure to the entire domestic stock market.

Is Vanguard a good retirement plan?

Why choose Vanguard for your small business? Selecting Vanguard for your retirement plan means you can expect high-quality, low-cost funds; investment flexibility; and exceptional service—all from a partner trusted by businesses like yours to align with our clients' interests.

Is VFIAX a good investment?

Both VFIAX, a mutual fund, and SPY, an ETF, seek to track the S&P 500. The SPY ETF may have a slight tax advantage over the VFIAX mutual fund since it's not actively managed, meaning there's less buying and selling of trades. VFIAX and SPY are generally considered strong investments, especially for passive investors.

What should a 70 year old invest in Vanguard?

Vanguard Growth and Income Fund (MUTF:VQNPX) Positioned perfectly between income and growth, the Vanguard Growth and Income Fund (MUTF:VQNPX) aims to surpass the S&Ps 500 Index, making it an attractive option for investors seeking both dividend income and potential stock price appreciation.

Is Fidelity or Vanguard better for retirees?

While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.

What is the best retirement portfolio for a 60 year old?

At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).

What fund should a retiree invest in?

Any mutual fund that delivers regular income payments can be a retirement income fund. Dividend funds, balanced funds and bond funds are three compelling income options, although there are a range of other fund types that can provide retirees with cash flow.

What is the best type of mutual fund for retirement?

What happens if Vanguard goes out of business?

The securities that underlie the funds are held by a custodian, not by Vanguard. Vanguard is paid by the funds to provide administration and other services. If Vanguard ever did go bankrupt, the funds would not be affected and would simply hire another firm to provide these services.

Should I do Vanguard or Fidelity?

Bottom Line. If you want to actively trade within your accounts, Fidelity might be the better option. However, if you want to focus more on index investing, or you want to use a robo-advisor, Vanguard has a slight edge.

What are the cons of Vanguard?

What is the average return of Vanguard VFIAX?

Should I invest in VFIAX or VOO?

VFIAX does not pay capital gains like typical mutual funds. Vanguard account holders who prefer a more active investing role may choose VOO. Returns, fees, and holdings are virtually identical. The difference is how you buy and sell an ETF vs how you buy and sell a mutual fund.

What is the outlook for VFIAX?

Average Price Target

Based on 504 Wall Street analysts offering 12 month price targets to Vanguard 500 Index Fd Admiral Shs holdings in the last 3 months. The average price target is $528.42 with a high forecast of $622.52 and a low forecast of $431.81.

Is $500,000 enough to retire at 70?

The short answer is yes, $500,000 is enough for many retirees. The question is how that will work out for you. With an income source like Social Security, modes spending, and a bit of good luck, this is feasible. And when two people in your household get Social Security or pension income, it's even easier.

Should a 70 year old get out of the stock market?

Conventional wisdom holds that when you hit your 70s, you should adjust your investment portfolio so it leans heavily toward low-risk bonds and cash accounts and away from higher-risk stocks and mutual funds. That strategy still has merit, according to many financial advisors.

How much does the average 70 year old have in retirement funds?

How much does the average 70-year-old have in savings? Just shy of $500,000, according to the Federal Reserve. The better question, however, may be whether that's enough for a 70-year-old to live on in retirement so that you can align your budget accordingly.

Why do people prefer Vanguard over Fidelity?

Performance and Cost. As the innovator of index funds, Vanguard offers an impressive range of index funds today with low expense ratios. Fidelity has a comparable selection of funds, but its fees generally aren't as competitive as Vanguard's. That said, Fidelity does offer some zero-cost funds for its customers.

Why not to use Vanguard?

Vanguard is the king of low-cost investing, making it ideal for buy-and-hold investors and retirement savers. But beginner investors and active traders will find the broker falls short despite its $0 stock trading commission, due to the lack of a strong trading platform and accessible educational resources.

What is better than Vanguard?

Vanguard and Fidelity are both retirement powerhouses, but Fidelity offers a more well-rounded platform that also caters to active traders.

Is $1000000 enough to retire at 60?

Will $1 million still be enough to have a comfortable retirement then? It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.

At what age should you get out of stock market?

Experts with the Motley Fool suggest allocating an even higher percentage to stocks until at least age 50 since 50-year-olds still have more than a decade until retirement to ride out any market volatility.

Is $2000000 enough to retire at 60?

If you retire at 60, $2 million won't stretch as far as it would if you retired at 70, as the money needs to cover a longer retirement period. The earlier you retire, the greater the risk of outliving your savings, which makes proper financial planning essential.