I believe these will eventually become standard fare for retirees. Unfortunately it is going to take a while for the field to settle down and figure out exactly how these should be configured. I currently like Vanguard’s funds the best with the following caveats.
Their distributions are too high. The 7% should be 5% and the 5% should be 4%. Which means if you use them you should reinvest some of the distribution back into the fund.
The high commodities allocation is problematic considering the bubble commodities is currently going through.
They are a little too aggressive. The most conservative fund only has 40% in bonds.
For the time being, unless you are extremely investment phobic, it is better to roll your own, but these should mature into very nice products.
This entry was posted by David on May 23, 2008 at 12:29 am, and is filed under Investing, Retirement. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.