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Sun Nov 29, 2020, 02:39 PM

opinions on s&p index fund

I'm 55 planning on retiring at 62, hoping the age to qualify for Medicare will be lowered to 60 ( fingers crossed). I've been investing in a vanguard index fund about 20 years. I'm a modest investor, hoping to enjoy social Security, a small pension, small annuity, and beneficiary to my SO's small pension. My question is: my 500 index is just regular- I pay yearly taxes on dividends. When I get closer to retirement, is there some type of account I can move the money into to protect it and get a small amount each month?

I guess I could sell it, but I'll probably lose some amount of it.

Has anyone retired with an index fund and how did it benefit you in your retirement?

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Arrow 12 replies Author Time Post
Reply opinions on s&p index fund (Original post)
XanaDUer2 Nov 2020 OP
efhmc Nov 2020 #1
XanaDUer2 Nov 2020 #2
efhmc Nov 2020 #3
XanaDUer2 Nov 2020 #4
efhmc Nov 2020 #6
question everything Nov 2020 #12
efhmc Nov 2020 #5
A HERETIC I AM Nov 2020 #9
efhmc Nov 2020 #11
Frasier Balzov Nov 2020 #7
XanaDUer2 Nov 2020 #8
A HERETIC I AM Nov 2020 #10

Response to XanaDUer2 (Original post)

Sun Nov 29, 2020, 02:43 PM

1. All of my funds I bought ages ago and they are all now closed.

If you use Fidelity, you can make an appointment with them and tell them what you are hoping to achieve and they will help you. The service is free.

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Response to efhmc (Reply #1)

Sun Nov 29, 2020, 02:51 PM

2. Thanks for replying

did you sell them or move the money into a sheltered account? I use Vanguard. I'm going to keep investing in it. I prob should call them.

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Response to XanaDUer2 (Reply #2)

Sun Nov 29, 2020, 03:08 PM

3. They are in an IRA. I also have lots of indiviual stocks because I

like buying and holding those companies I like. I am a long time investor and not a trader.

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Response to efhmc (Reply #3)

Sun Nov 29, 2020, 03:12 PM

4. Thanks

I may call vanguard and see if it can be moved to an ira account. I grew up in a poor family, and tried to educate myself so I'd have some money in the stock market, but am too scared to invest in anything but the 500, plus small cap, international, bonds, mid cap in an annuity. I feel like I could have done more and better.

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Response to XanaDUer2 (Reply #4)

Sun Nov 29, 2020, 03:15 PM

6. Wow, sounds good to me. Good luck. I feel that our econmy will be doing much better

next year with Biden and a vaccine on the way.

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Response to XanaDUer2 (Reply #4)

Mon Nov 30, 2020, 08:49 PM

12. I don't think it is so simple to move to IRA account

Do you have other retirement accounts? Covered by a pension plan at work?

I think that moving to Roth makes more sense because it is after tax money and you withdraw it tax free.

Vanguard have many advisors who can work with you. For free.

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Response to XanaDUer2 (Original post)

Sun Nov 29, 2020, 03:14 PM

5. I am pretty sure there is a DU investment group.

under Economy and Education. You can probably find some answers there.

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Response to efhmc (Reply #5)

Mon Nov 30, 2020, 08:07 AM

9. This is it.

That’s why it’s called the “Personal Finance and Investing Group”

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Response to A HERETIC I AM (Reply #9)

Mon Nov 30, 2020, 12:05 PM

11. Made me laugh. Obviously I had not looked at the source of the thread.

Thanks for waking me up.

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Response to XanaDUer2 (Original post)

Sun Nov 29, 2020, 03:49 PM

7. Now is the time to switch out of that S&P fund.

Last edited Sun Nov 29, 2020, 04:26 PM - Edit history (2)

I say this because it has recovered all of what it lost during the crash earlier this year.

The Federal Reserve made this possible with money supply manipulation, but the underlying economy is still quite fragile from the pandemic.

Vanguard's money market fund VUSXX is where your nest egg belongs.

This is a constant value fund, meaning it doesn't fluctuate.

Therefore, it is a good core holding from which to deploy portions of it over the next five to seven years into suitable retirement holdings.

By suitable retirement holdings, I mean mutual funds or exchange traded funds whose portfolios consist mainly of BBB+ bonds and which pay a monthly dividend.

If you're not already in a tax-deferred IRA type account but you still have earned income, it might be a good idea to open one for any new money you want to add between now and retirement.

Municipal bond funds are a place to eventually deploy *some* of your VUSXX nest egg, since their dividends are typically exempt from federal income tax. Just remember that state and local tax collections are vulnerable to a fragile economy as well.

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Response to Frasier Balzov (Reply #7)

Sun Nov 29, 2020, 05:35 PM

8. Thank you

I'll read up on that. I feel so dumb about this stuff.

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Response to Frasier Balzov (Reply #7)

Mon Nov 30, 2020, 08:33 AM

10. Please do not make specific investment recommendations in this group

You do not know the OP's financial situation thoroughly enough, nor his tolerance for risk to suggest he purchase specific securities or Mutual Funds.

If you are a registered representative (or even if you aren't) you can feel free to contact the OP via private message and suggest anything you want, but as Host of this group, I ask that you and all others who participate in this group refrain from making specific recommendations.

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