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Recommended Vanguard Investments

Vanguard Stock Index Mutual Funds

Total Stock Market Index Fund Admiral Shares

Owns the entire U.S. stock market to include small, mid, and large companies

Ticker Symbol:

VTSAX

Expense Ratio:

0.04%

Total International Stock Index Fund Admiral Shares

Owns Developed (80% roughly) and Emerging (20% roughly) stocks outside the U.S.

Ticker Symbol:

VTIAX

Expense Ratio:

0.11%

FTSE All-World Ex-U.S. Small-Cap Index Fund (VFSAX)

Owns small companies outside the U.S. in developed and developing countries

Ticker Symbol:

VFSAX

Expense Ratio:

0.16%

Developed Markets Index Fund Admiral Shares

Owns Developed (think Canada, Germany, Japan, and England) stocks only outside the the U.S.

Ticker Symbol:

VTMGX

Expense Ratio:

0.07%

Emerging Markets Index Fund Admiral Shares

Owns emerging markets/countries (think China, Brazil, India, and Russia) stocks outside the U.S.

Ticker Symbol:

VEMAX

Expense Ratio:

0.14%

Real Estate Index Fund Admiral Shares

Owns stock in commercial real estate (these companies own dozens and dozens of properties) in the U.S.

Ticker Symbol:

VGSLX

Expense Ratio:

0.12%

Small-Cap Value Index Fund Admiral Shares

Owns stock in small value (this uses the Fama and French research when investing) in the U.S.

Ticker Symbol:

VSIAX

Expense Ratio:

0.07%

Vanguard Bond Index & Managed Mutual Funds

Total Bond Market Index Fund Admiral Shares

Owns high quality intermediate-term maturity U.S. corporate and government bonds

Ticker Symbol:

VBTLX

Expense Ratio:

0.05%

Short-Term Bond Index Fund Admiral Shares

Owns high quality short-term maturity U.S. corporate and government bonds

Ticker Symbol:

VBIRX

Expense Ratio:

0.07%

Inflation-Protected Securities Fund Admiral Shares

Owns the highest quality intermediate-term maturity U.S. bonds that will stay up with unexpected inflation

Ticker Symbol:

VAIPX

Expense Ratio:

0.10%

Intermediate-Term Tax Exempt Fund Admiral Shares

Owns high quality intermediate-term maturity municipal bonds that are not taxed at the federal level

Ticker Symbol:

VWIUX

Expense Ratio:

0.09%.

Vanguard Target Retirement Mutual Funds

There is a long list of target retirement funds that own Vanguard stock and bond index funds at a very low cost ranging from .11% to .15%. Simply select the fund that fits your desired asset allocation (70% stocks vs. 30% bonds and cash for example). You can type in to the search engine at Vanguard to identify how each portfolio is broken down based on the number that is attached to the fund. As always, factor in other money within your portfolio and the spouses, if applicable, when making this critical decision.

The Target Retirement Income Fund (VTINX) could be used as a low risk savings account during times of very low interest rates. The funds asset allocation does not change from the 70% bond (includes TIPS) / 30% stock allocation while you invest there. One would consider using this fund when they are willing to take a small amount of market risk to try to get some kind of return that is hard to come by with cash and even bonds when interest rates are at historical lows, which is the case in 2021.

Important Notes:

The minimum investment for Target Date Funds is $1,000.

The minimum investment for Admiral Shares is $3,000 for index funds and $50,000 for managed funds.

The expense ratio on each fund is current as of July 01, 2021.

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Stuff the lawyer wants me to say: Investing outside a bank or a credit union is not FDIC insured. You may lose the value in the investments you select. All information provided here is for informational purposes only. It is not an offer to buy or sell any of the securities, insurance products, or other products named. Translated: I am not selling anything! Educate yourself, research the information that you learned and finally make the right decisions that will benefit you and your family going forward.

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