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Can we colaborate, e.g, build model portfolio?
Old 04-05-2014, 09:13 PM   #41
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Can we colaborate, e.g, build model portfolio?

OP

No such thing as an ideal portfolio and it depends on where you are, etc etc etc. do a search and you'll find every possible variety of portfolios.

Retirement:

VTSAX 52%
VTIAX 8%
VBTLX 38%
Cash 2%

Or

Vanguard Wellington 88% (Wellesly if your too conservative)
Cash 2%

Young investor just beginning:

VTSAX 90%
VTIAX 10%

Using automatic deposits on a monthly basis for DCA

Check portfolio once a quarter, rebalance when needed - otherwise, leave it alone. If you pick at it, it will never heal...

There is no such thing as wealth safety. There is always risk. Life isn't safe. You're overthinking stuff.
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Old 04-05-2014, 09:36 PM   #42
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More model portfolios in the WSJ today based on a few index funds:
Funds Investing: Make More Money and Worry Less - WSJ.com
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Old 04-06-2014, 08:57 AM   #43
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Hi LOL, reading article, like: "Tactical asset allocation is a very tough game to play," says Jeremy Stempien, director of investments at Morningstar Investment Management

You area saying same it seems.

Thanks
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Old 04-06-2014, 03:50 PM   #44
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I am leaving my FA for VG. I'm 42...will retire in 2 years. I came up with the allocation below. Feedback please, thanks!

Equities- 65% Bonds 35%

VTSAX 40% (total stock mkt ind - adm)
VTCLX 20% (tax-managed cap appr -adm)
VTMSX 20% (tax-managed small cap - adm)
VTIAX 10% (total int'l stock - adm)
VFWAX 10% (FTSE all-world ex-us - adm)

VWALX 20% (high yield tax ex)
VMLUX 40% (limited term tax ex)
VWIUX 40% (int-term tax ex)
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Old 04-06-2014, 03:57 PM   #45
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@Travelwanted, one could do worse. Your portfoilio is fine. I would not bother with tax-managed cap appr myself unless perhaps you already owned it for a long time.

There is also no reason to own VFWAX instead of VTIAX. Every stock in VFWAX is also found in VTIAX, that is there is a 100% overlap. I own VEU (ETF share class of VFWAX), but that was before VTIAX in its current form was available. I would switch all my VEU to VTIAX if I didn't have to pay a boatload of taxes to do so.

But perhaps you wanted to own the small-cap version of VFWAX, namely VFSVX or VSS. That would overweight small-caps in international which is something I do and would match your overweighting of small caps on the US side of things.

Many folks, myself included, believe that high-yield bond funds are much like equity funds, so I would not own VWALX. Instead if I wanted that risk (and return) I would just own more equity funds.
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Old 04-06-2014, 04:29 PM   #46
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Quote:
Originally Posted by LOL! View Post
@Travelwanted, one could do worse. Your portfoilio is fine. I would not bother with tax-managed cap appr myself unless perhaps you already owned it for a long time.

There is also no reason to own VFWAX instead of VTIAX. Every stock in VFWAX is also found in VTIAX, that is there is a 100% overlap. I own VEU (ETF share class of VFWAX), but that was before VTIAX in its current form was available. I would switch all my VEU to VTIAX if I didn't have to pay a boatload of taxes to do so.

But perhaps you wanted to own the small-cap version of VFWAX, namely VFSVX or VSS. That would overweight small-caps in international which is something I do and would match your overweighting of small caps on the US side of things.

Many folks, myself included, believe that high-yield bond funds are much like equity funds, so I would not own VWALX. Instead if I wanted that risk (and return) I would just own more equity funds.

Thanks, LOL. . .I had the misconception the VFWAX had more emerging markets but I see the holdings are nearly identical as you say. I'll just go VTIAX 20%.

I did not choose Wellington as many suggest as 1-its bond duration is too long for my blood and 2- I want tax exempt bonds. I'm still working and in the highest bracket. I will re-evaluate in a few years.

Would you suggest dropping the High-Yield for Total Bond Fund? Probably a safer call.

Lastly, any advantage of using the ETFs vs the funds? I felt the admiral shares would be the way to go.
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Old 04-06-2014, 05:11 PM   #47
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If you have this portfolio at Vanguard, then there is no advantage to ETFs over Admiral funds. If you have this portfolio elsewhere, then it is unlikely that you can get Admiral funds, so ETFs would have the advantage.

Hmmm, did you notice how my suggestions to your portfolio pretty much turned it into the portfolio I suggested at the beginning of this thread?

You can also drop by bogleheads.org for more comments on your ideas.
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