Join Early Retirement Today
Thread Tools Search this Thread Display Modes
How many funds to use during retirement
Old 03-15-2010, 10:16 AM   #1
Dryer sheet wannabe
Join Date: Feb 2008
Posts: 14
How many funds to use during retirement

How many funds (or ETFs) do you use once you reach ER. Do you limit any one fund to 30% of your overall portfolio - or do you use a Target Retirement Date fund to handle 100% of your portfolio?

If you want a 50/50 split - would you allow a single stock or bond index fund to handle 50% of your total portfolio? I don't like the slice - dice approach but I worry about a single investment holding 50% of my retirement assets.

I would really appreciate hearing how others are handling this issue.


rwc356 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-15-2010, 10:32 AM   #2
Recycles dryer sheets
Join Date: Nov 2003
Location: Charlotte
Posts: 360
Vanguard currently (at least often) recommends a portfolio of just 3 funds; Total Stock Market, Total International and Total Bond. The LOWEST percentage possible for a fund here is 33 1/3%. Of course these are all index funds and no manager risk is involved. Fyi, we use 6 funds including money market with 3 being balanced. Largest holding is about 30% (Wellesley, see another recent thread) which seems about right.

WilliamG is offline   Reply With Quote
Old 03-15-2010, 11:03 AM   #3
Recycles dryer sheets
Jake46's Avatar
Join Date: Sep 2006
Location: Fort Collins
Posts: 194
We have four funds (Total Stock Market, Total International, Total Bond & Inflation-Protected Securities) plus a money market account. We sleep well at night.
Jake46 is offline   Reply With Quote
Old 03-15-2010, 11:42 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 9,821
I have about 40 because I have about 16 different accounts. I don't think one can generalize about how many funds one should have.
LOL! is offline   Reply With Quote
Old 03-15-2010, 11:45 AM   #5
Moderator Emeritus
W2R's Avatar
Join Date: Jan 2007
Location: New Orleans
Posts: 42,991
5 funds at Vanguard (Wellesley, 2 stock index funds, 2 bond index funds)
30% in Wellesley, smaller percentage in each of the others

Plus - -
* TSP G Fund (bond fund but guaranteed not to lose value, like cash)
* cash in the bank and in a money market fund at Vanguard
* a four figure Roth which is for fun/impulse investing

Income sources - -
* Dividends from the five Vanguard funds during good market years
* Small pension
* Equal monthly withdrawals from the G Fund
* SS eventually, at which time I will lower the G Fund withdrawal amount by half the SS payment

Personally I really like the investing advice offered at the Bogleheads' forum - - many of our members also participate there, and it is a forum focused more on investing whereas the focus of the Early Retirement Forum is arguably somewhat broader.
I have drunken deep of joy,
And I will taste no other wine tonight.

― Percy Bysshe Shelley
W2R is offline   Reply With Quote
Old 03-15-2010, 09:17 PM   #6
Thinks s/he gets paid by the post
Helen's Avatar
Join Date: Oct 2004
Location: Portland
Posts: 1,546
I like your question, Bob. I've been struggling with this. I really want to keep my portfolio as simple as possible, but even then it will be more complex then what I want. Part of the complexity is the number and types of accounts.

My partner received an inheritance last Fall and I will be receiving one in the next month or so, so I am trying to figure out what to do with it. We are three years away from retirement.

My plan (as of this minute) is:

G fund in TSP
Total Stock Market Index fund
Total International Stock Market Index fund
Money Market fund
Wellesley (viewed as a bond fund)

It's too bad they lowered the limit on I-bonds. I'd skip CDs altogether and just go with them.
Helen is offline   Reply With Quote
Old 03-15-2010, 09:44 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,667
Target Retirement 2015 + early SS + small non cola pension.

The rest is now play money. 16th year of ER (1993).

heh heh heh - the play money is mostly in Norwegian widow(aka dividend type ) stocks or DRIP plans. I've been all over the map since 1966 - now mostly a Boglehead with a few sinful individual stocks to keep the male hormones happy.
unclemick is online now   Reply With Quote
Old 03-16-2010, 08:22 AM   #8
Dryer sheet wannabe
Join Date: Feb 2008
Posts: 14
Thanks for all the information. Based on W2R's suggestion, I am going to post this question on the Bogelhead's forum as well.


rwc356 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Your Favorit Retirement Funds? rsingh6675 FIRE and Money 7 07-12-2009 12:57 PM
Retirement funds Texas Proud FIRE and Money 3 03-21-2008 06:48 PM
Target Retirement Funds: Bond Funds vs Actual Bonds? Gearhead Jim FIRE and Money 11 10-23-2007 12:39 PM
Bank retirement funds jambo101 FIRE and Money 10 10-22-2007 06:12 PM
FI taxable funds versus retirement funds just_hatched FIRE and Money 12 10-10-2005 10:09 AM

» Quick Links

All times are GMT -6. The time now is 06:17 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.