Vanguard Blog

Considering conversion?

John Ameriks — Fri, 20 Nov 2009 13:10:52 +0000

The issues aren’t quite the same as those one faces when considering the deepest aspects of personal faith and religious doctrine, but a “Roth conversion” can pose some difficult issues for investors nonetheless. And we’re going to hear much more about this going forward because of a scheduled change in the law: Unless something unexpected [...]

Time to think about year-end tax moves

Ellen Rinaldi — Tue, 17 Nov 2009 19:07:13 +0000

We’re coming to the close of 2009. It’s been an eventful year, a year of change, and over the next few weeks you’ll be seeing a lot of articles putting it all in perspective. It’s also the close of the tax year, and year-end planning should be commanding some of your attention. One of the few [...]

Stocks and time

John Ameriks — Fri, 06 Nov 2009 14:16:49 +0000

Jeremy Siegel has a recent piece in the Financial Times that restates his view that stocks are the most appropriate investment for investors with a long horizon. I wonder how most of you look at this issue, especially after the recent market gyrations. Are you still listening to Professor Siegel, or did you shred his book [...]

Here today, gone tomorrow?

Ellen Rinaldi — Tue, 03 Nov 2009 13:02:25 +0000

You see it all too often: A caretaker is arrested for stealing funds from a senior under his or her care. What you don’t see as frequently—though I believe it’s a great deal more prevalent—is family financial fraud, primarily targeting seniors. It generally takes the form of identity theft and account takeovers. It often involves [...]

Cognitive skills and financial choices

Steve Utkus — Tue, 27 Oct 2009 13:24:31 +0000

How does your ability to make financial decisions change over time? One research study suggests that, across the population, financial skill follows a hump-shaped pattern. In our youth, we start with low levels of financial knowledge. Over time, our ability grows through experience. However, as we age, our cognitive faculties begin to decline. Over time, the [...]

401(k) performance: The numbers add up

John Ameriks — Thu, 22 Oct 2009 15:15:57 +0000

I’m a little tired of reading about how “buy and hold” is dead, and diversification doesn’t work, and how “target-date funds don’t work,” and that there was too much risk, especially for pre-retirees, in these balanced funds. These stories seem to continue regardless of what’s going on in the real world. So I won’t discuss much. [...]

Coming soon: More of a good thing

Ellen Rinaldi — Tue, 20 Oct 2009 13:58:59 +0000

There’s a savings vehicle in which all earnings, appreciation, and interest can be free of income tax forever. If the rules are met, there’s no RMD to be taken, no income tax due on withdrawals, and, while the account assets are included in your estate, withdrawals by your beneficiaries can also be tax-free. It hasn’t [...]

Do you have the bond gene?

Craig Stock — Fri, 16 Oct 2009 13:23:13 +0000

One of the smartest people I know—a brilliant copy editor—used to shake her head as she read articles about bonds and the bond market. “I think you have to be born with the bond gene to understand bonds,” she would mutter. What set Mary to muttering, as I recall, was the fact that bond prices tend to [...]

Bad facts, bad story

Steve Utkus — Wed, 14 Oct 2009 14:20:51 +0000

There are only two reasons you appear on the cover of Time magazine—either you are receiving plaudits from the media, or you’re about to be tarred and feathered. 401(k)s are featured on the cover of Time this week, and it’s not because they’ve been named “plan of the year.” One phrase captures the spirit of the [...]

Death and taxes

Ellen Rinaldi — Tue, 06 Oct 2009 13:47:27 +0000

Ben Franklin definitely had it right when he said that nothing is certain except death and taxes. And you can be sure that as we get closer to the end of the year, we’ll hear lots of discussions on tax planning. Usually, we read about potential tax legislation along with warnings to avoid making any major [...]

Boomer market meltdown?

Steve Utkus — Wed, 30 Sep 2009 13:23:01 +0000

Should you invest differently given the impending retirement of tens of millions of baby boomers? This is a question I’ve received from advisors and investors in recent weeks, and one which, quite frankly, I’ve given little thought to throughout the financial crisis. (It always seemed like a topic of conversation when the Dow was at [...]

Active or passive?

John Ameriks — Fri, 25 Sep 2009 14:22:36 +0000

In 1976, Vanguard launched its 500 Index Fund, making it the first index mutual fund available to non-institutional investors. The creation of an index fund intended for individual investors was an important salvo in the now long-running battle over which investing approach—active or passive—is superior. This is a 35-year-old fight (at least) that I certainly don’t [...]

On self-reliance

Ellen Rinaldi — Tue, 22 Sep 2009 13:05:26 +0000

This comment on Steve Utkus’ recent post about retirement struck a major chord with me: “Our children’s incomes are not increasing, and they have their own children to support, let alone saving for their own retirement. No one is to blame or is being stingy; we simply must plan for and take charge of our own [...]