(PUB) Investing 2015

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Real Compounding: Total Stock Market

Real Compounding: Total Bond Market

Real Compounding: Wellington

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000

$1,000 per year $1,500 per year $2,000 per year $2,500 per year

AGE

your child or grandchild. Obviously you won’t be making regular contri- butions to the IRA, since its deposits are contingent on the child’s income stream, but if Vanguard’s smart, they’ll see this as a way to grab a potential long-term client at an early age. Finally, don’t procrastinate. If your child or grandchild (or young friend) earned some income last year, you have

together, its one saving grace is that low, low minimum. My preference, however, would be to go directly to one of the PRIMECAP Odyssey funds, where the IRA minimums are also just $1,000 (POAGX, my favorite for kids, is now closed, so go for POGRX). Or, if you have a personal represen- tative at Vanguard, see if they’ll waive the minimum on Dividend Growth for

Despite two stock bear markets dur- ing this period, Wellington, which keeps about 60% of assets in stocks and the remainder in bonds, beat the returns from Total Bond Market and came close to matching those from Total Stock Market. These charts might be just the thing to show the teen or young adult you’re interested in leading down the road to retirement. I hope I’ve both made the benefits of funding an IRA clear, and simplified it enough that a young inves- tor can understand it. But the question remains: How can we get a teenager to save for retirement? You probably can’t. So, my advice is to help them. That’s what I did with both of my kids. Let’s assume you can afford to match their summer earnings. Do it. Let them have their hard-earned money, but open a Roth IRA in your child or grandchild’s name and add the money yourself. Remember, the child may earn $1,000, but with taxes taken out, they will not bring it all home. That doesn’t keep you from putting a full $1,000 into a Roth for them. Maybe you can’t afford to add the full amount. Consider making a deal with your teen to match a portion of their earnings that they add to the Roth as well. If the teen contributes $250, maybe you’ll contribute $500. Grandparents, obviously, can get into this act. Finally, there’s the issue of the many $3,000 minimums at Vanguard. First off, you could start the youngster in a STAR account for just $1,000. While I’m not a huge fan of STAR because of the amalgam of funds it cobbles

MARCH SPECIAL DISTRIBUTIONS

Precious Metals & Mining

$0.14770 @ $8.95 $0.51200 @ $84.91 $0.16000 @ $28.45 $0.34500 @ $95.21 $0.34600 @ $100.96 $0.41200 @ $89.46 $0.34100 @ $95.50 $0.98400 @ $188.49 $0.41400 @ $101.78 $0.45300 @ $88.52 $0.05200 @ $122.56 $0.03000 @ $131.78 $0.00600 @ $37.86 $0.02400 @ $58.80 $0.07600 @ $109.24 $0.01700 @ $26.31 $0.08100 @ $18.67 $0.06700 @ $15.07 $0.04600 @ $13.06 $0.01700 @ $105.04 $0.13200 @ $26.95 $0.00900 @ $46.99 $0.15800 @ $50.38 $0.04800 @ $16.47 $0.50800 @ $107.73 $0.23200 @ $52.78 $0.31400 @ $61.61 $0.12300 @ $25.43 $0.82300 @ $95.32 $0.41300 @ $49.09 $0.50000 @ $83.76 $0.18400 @ $32.79 $0.17300 @ $25.58 $0.23000 @ $39.09 $0.16200 @ $48.63 $0.05800 @ $19.59 $0.06600 @ $99.13 $0.00900 @ $38.26

500 Index

$0.93400 @ $194.32 $0.13600 @ $29.86 $0.04400 @ $13.18 $0.18100 @ $39.82 $0.04200 @ $10.15 $0.45900 @ $80.20 $0.17500 @ $32.74 $0.36600 @ $22.81 $0.07100 @ $40.72 $0.03200 @ $25.88 $0.19800 @ $30.75 $0.31600 @ $54.28 $0.16000 @ $29.92 $0.03700 @ $92.48 $0.02500 @ $70.51 $0.07600 @ $49.36 $0.03800 @ $24.94 $0.02000 @ $56.29 $0.00100 @ $22.66 $0.33200 @ $108.06 $0.15100 @ $56.21 $6.41900 @ $225.42 $0.46200 @ $67.65 $0.17800 @ $27.33 $0.43000 @ $95.56 $0.16000 @ $38.84 $0.05890 @ $19.02 $0.31400 @ $70.05 $0.23600 @ $83.07 $0.34800 @ $59.36 $0.02700 @ $132.70 $0.01700 @ $108.02 $0.00400 @ $42.51 $0.00500 @ $35.28 $0.02700 @ $91.91 $0.00900 @ $36.21 $0.11100 @ $61.30 $0.01700 @ $11.92

REIT ETF

Balanced Index

REIT Index

Convertible Securities Developed Markets ETF Developed Markets Index Dividend Appreciation ETF Dividend Appreciation Index

Russell 1000 ETF

Russell 1000 Growth ETF Russell 1000 Value ETF

Russell 3000 ETF

S&P 500 ETF

Dividend Growth

S&P 500 Growth ETF S&P 500 Value ETF

Emerging Markets Stock ETF Emerging Markets Stock Index

SmallCap ETF

Equity Income

SmallCap Growth ETF SmallCap Growth Index

Europe ETF

European Index

SmallCap Index

Extended Market ETF Extended Market Index

SmallCap Value ETF SmallCap Value Index

Financials ETF Financials Index

STAR Cons. Gro.

STAR Income

Global ex-U.S. Real Estate ETF Global ex-U.S. Real Estate Index

Target Retirement Income Tax-Man. Capital Appreciation Tax-Managed Balanced Tax-Managed SmallCap Total International Stock ETF Total International Stock Index

Growth ETF Growth Index Health Care

High Dividend Yield ETF High Dividend Yield Index

Total Stock Market ETF Total Stock Market Index Total World Stock ETF Total World Stock Index

LargeCap ETF LargeCap Index Managed Payout

MegaCap ETF

Utilities ETF Utilities Index Value ETF Value Index

MegaCap Growth ETF MegaCap Value ETF

MidCap ETF

MidCap Growth ETF MidCap Growth Index

Wellesley Income

Wellington

MidCap Index

World ex-U.S. ETF World ex-U.S. Index

MidCap Value ETF MidCap Value Index

World ex-U.S. SmallCap ETF World ex-U.S. SmallCap Index

Pacific ETF Pacific Index

The Independent Adviser for Vanguard Investors • April 2015 • 5

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