Vanguard Roth IRA- STAR or Target Retirement

Hold old are you?

FWIW, I would start off in a STAR just to get your feet off the ground and start getting time in market.

Then when you have enough, buy into something like VHCOX or VSEQX

Continue contributing at a 30/70 or so into STAR/equity fund.


Then forget it.


IDK....you wouldn't be wrong setting and forgetting STAR....but I just wouldn't like the idea of being that highly invested in bonds for retirement goals.


FWIW, I only use STAR in my account for money I might pull out...emergency fund, down payment of my house, etc.

My retirement contributions are separate and in addition to whatever I put into the STAR, thus allowing me to use the tax advantaged status for day to day purchases without stealing from my retirement.



I do however use a Vanguard Target Retirement for my Roth 401k contributions though, simply because it is the best option offered.

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Finally about to open up a Roth IRA and this question has come up. Now I am not an expert by any means but I am starting to learn. From what I can tell, STAR will provide a "safer" investment with a 60/40 split rather than the 90/10 split that a TR has. Both require a min $1000 to open as that seems like a good starting point for me. As a beginner, what would be the better option for me?

Sidebar question: Once I pick one of these funds and start to contribute to it, does it then act almost like a savings account where I simply put money into it and watch it or do I have to actively manage what funds it is going into? Basically an "I set it and forget it" kind of account?(hopefully that is not a stupid question )

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I own these two in my Vanguard account. I don't think you have to sink $1000 all at once if you set up automatic contributions. I basically "set it and forget it" with these though I do log in regularly to double check my balance and rate of return. The funds are managed so no need for you to change anything unless you wish to change your allocations, switch to a new fund or to swap out of one and into another. TR automatically adjusts itself to become more conservative over the years.

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Vanguard Roth IRA- STAR or Target Retirement

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I read this as the other option being to become a door greeter for extra cash at Target post career.