The 5 Best Vanguard Funds for Retirees

Vanguard, with more than $5 trillion in global assets under management, is the world's largest mutual fund provider - and for good reason.

Vanguard funds pioneered index investing and, since its founding in the 1970s by the late Jack Bogle, have emphasized low costs. Organized like a mutual insurance company, Vanguard's funds are owned by fund shareholders and run "at-cost." There's no need to turn a profit to satisfy outside investors.

Any time I'm tasked with covering Vanguard funds, I'm a happy guy. Very few Vanguard funds haven't done right by investors, but Vanguard is especially good for those in retirement. Retirees, after all, don't want to take outsize risks in their investing, and Vanguard's managers aren't encouraged to take big gambles. Low costs remove a lot of the pressure on managers to take extra risk in the hopes of squeezing out a little more profit.

Here are my five best Vanguard funds for retirees. This list heavily emphasizes active management (but). Several of my picks also are recommended by Dan Wiener, editor of the The Independent Adviser for Vanguard Investors newsletter.