Bichon Frise wrote:
That's not to say this forum discussion will lead to my final decision.
That's b/c your mind was already made up before you ever posted here.
$20k is not a lot. You cannot replicate the target date funds all in admiral funds. best case is:
VTSAX 0.05 ER 55.1% AA = 0.02755%
VGTSX 0.22 ER 23.6% AA = 0.0592%
VBMSX 0.22 ER 21.3% AA = 0.04
TOTAL = 0.13361%
VTHRX 0.18 ER
Which brings me to my original question, should I go with Vanguard's suggested fund VTIVX based on my current age?
Vanguard suggests VTHRX for people within the age range of 45-49.
Which brings me to my original point, you need to account for both your and your wife's accounts when you do this.
Step 1) Determine your AA. If you want what VG assigns to your age group, fine, do it. If you want something else, do it. If your question is what should your AA be, then ask. But, it needs to account for your goals, risk tolerance, etc. You really should decide this with a serious talk with your wife.
Step 2) Look at your wife's defined contribution investment options. Can you stomach them all for your AA? Is only 1 tolerable? Pick which funds you will invest in.
Step 3) Fill the rest of the AA "needs" through your rollover IRA. Perhaps this is a target date fund, perhaps not. You can use basic math to calculate an effective ER. It's shown above.
Step 4) Do it.
I suspect you need someone to hold your hand. While the DIY approach is rather simple and easy, it does require some work. If your time is too valuable, or you're too lazy (more likely the latter), then pick whatever you would like. It probably has little bearing on the end result, but I am of the opinion that a couple hours here and there to minimize risk is pretty cheap.
If you're looking for validation in your decisions, you're not going to get it from me.