Is this a safe fund to be invested in at this time? I have 95% of my savings invested in this fund , personal money and IRA money.
Terry Says: I would never recommend having 95 percent of your money in any one fund! Where is your “chicken money” — the money you can’t afford to lose?? That’s personal money, and it should be in a money market account at a bank, short-term cd, or MM mutual fund that buys only Treasury bills.
How much of your money is chicken money? That depends on your age, risk tolerance, and financial situation. But the very fact that you are worried tells me that it should be at last 25 percent of your assets held in safe accounts — unless you are under age 40!
It’s not that the Vanguard Target Retirement Fund is a risky fund — but depending on the target year (which you didn’t say) and your current age, you need to recognize the risk in both the stock and bond investments inside the fund.