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Old 01-03-2012, 10:47 AM   #21
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I have 62% VTSAX, 1% VGTSX, 23% VAIPX, 2.5% in GOOG, RAX and BIDU, and 11.5% in savings. The VAIPX is all in the tax-deferred part of my investments.

The individual stocks are just for a bit of fun, and heaven knows why I put such a small amount into VGTSX.

Some folk know just enough about investing to be dangerous with their own money. Luckily (I think), I don't even know that much, so will probably stick fairly close to these figures in the future.

The nice thing about not being overly smart and living with my head in the clouds much of the time is that when everyone thinks the world is ending and the sky is falling, I'm too preoccupied with my life to be worried about changing the direction of my investments.
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Old 01-03-2012, 11:46 AM   #22
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I think you will find the individuals who post regularly to the "FIRE and Money" forum are generally self-selected invest-it-yourself tinkerers. Most of us are constantly studying and talking about improving our investing, because we enjoy doing so. We almost all save a lot on portfolio management fees, and we almost all make investing much more complex than it needs to be.

Imagine a forum for people who rebuild old cars in their garages, to which you post the question: "Should I go to the dealer or to Jiffy Lube to have the oil changed in my brand new car?" Most of the responses would probably be: "Well, I would just change it myself, but I send my MIL/daughter/cousin to ____."

...

If pressed, I might even admit that the simple portfolio I describe has a good chance of beating my actual portfolio's performance, and would definitely be less volatile than my actual portfolio. However, I expect to continue tinkering.
If we were face-to-face right now, I would pour you a shot of Cognac (which I actually have), and light you a cigar (which I do not have)...

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The nice thing about not being overly smart and living with my head in the clouds much of the time is that when everyone thinks the world is ending and the sky is falling, I'm too preoccupied with my life to be worried about changing the direction of my investments.
And I would do the same for you too...

Hey, a guy's got to do what makes him happy, as long as it is not immoral, nor illegal, nor unethical.
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Old 01-03-2012, 12:16 PM   #23
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I used to mix my own Vanguard index funds, then for a while I ran with a LifeStrategy Moderate Growth sprinkled with some extra diversification like the REIT fund and an international index. Then a couple of years ago or so I went for a Wellington-Wellesley split to target my desired AA. I do still have Fidelity's Spartan 500 fund because it's the only low-expense fund available in my current 401(k), but the Wellington-Wellesley mix is very self-balancing and lazy at a slight fee expense premium over my previous options.

I didn't like the Asset Allocation fund component of LifeStrategy Moderate growth else I probably would have stuck with it. I view the Wellington-Wellesley mix as quite similar to my previous mixes with the exceptions that it's more value stock focused and a bit higher expense.
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Old 01-03-2012, 12:35 PM   #24
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I'm LAZY!

Most of my retirement costs will be covered by rent, SS and an annuity, and the rest of my portfolio is 10% cash and the rest divided evenly between, Vanguard Wellesley, Total Bond Index, Total Stock Market Index and Total International (or the equivalents in accounts from other providers)
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Old 01-03-2012, 12:48 PM   #25
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I'm LAZY!

Most of my retirement costs will be covered by rent, SS and an annuity, and the rest of my portfolio is 10% cash and the rest divided evenly between, Vanguard Wellesley, Total Bond Index, Total Stock Market Index and Total International (or the equivalents in accounts from other providers)
Here's to lazy (lifts his glass). It prevents us from doing possibly foolish things with our livelihoods
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Old 01-03-2012, 01:35 PM   #26
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My portfolio is lazier than the lazy portfolios! Looked to me like most of them had a half dozen or more funds; some looked positively slicey-dicey to me. I pretty much just have 30% Wellesley and a very few index funds.

When working out my portfolio design, I went back and forth with the good folks over at Bogleheads a few times and they were a big help in refining my initially very rough idea of what I wanted to do.

If any are reading, thanks so much!
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Old 01-03-2012, 07:24 PM   #27
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Harry Browne's "Permanent Portfolio" has an extremely strong track record as a lazy portfolio, 30+ years running:

General info on PP
http://crawlingroad.com/blog/2008/12/13/a-permanent-portfolio/

PP wins 2008 portfolio smackdown – beat returns offered by ALL professionally recommended asset allocation strategies:
http://crawlingroad.com/blog/2009/01/05/permanent-portfolio-wins-2008-lazy-portfolio-smackdown/

The fund that approximates a “permanent portfolio” type allocation for you is call sign “PRPFX” but you could approximate the Permanent Portfolio on your own with lower fees and a small amount of legwork. Here is one suggested constructs:
http://seekingalpha.com/article/274266-building-a-permanent-portfolio-using-etfs

Research further to your heart's content at the Bogleheads forum or Gyroscopic investing.
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Old 01-03-2012, 11:13 PM   #28
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PRPFX has a very impressive return for the last decade. However, there are many critics doubt that such return will be repeated for the next decade.
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Old 01-03-2012, 11:47 PM   #29
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Harry Browne's "Permanent Portfolio" has an extremely strong track record as a lazy portfolio, 30+ years running
PRPFX has done well in the last 10 years.

According to Morningstar, if one put $10K into PRPFX on 1/03/2002, he would have $28,742 today (1/03/2012). If he invested in the Vanguard S&P index, he would have $13,209.

But prior to that, PRPFX was not that great.

Again, Morningstar shows that if an investor put $10K into PRPFX on 12/01/82, he would have $69,775 today (1/03/2012). If he put that into Vanguard S&P index, he would have $183,105.

Check out at Morningstar Stock, Mutual Fund, Bond, ETF Investment Research for yourself.

Going forward, which one will win? Your guess is as good as mine.
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Old 01-04-2012, 03:05 AM   #30
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I didn't like the Asset Allocation fund component of LifeStrategy Moderate growth else I probably would have stuck with it.
Same here, but that's been fixed. The Asset Allocation Fund is gone. As of 11/30/11 (per Vanguard's site) LifeStrategy Moderate Growth consists of:

Vanguard Total Stock Market Index Fund Investor Shares 42.7%
Vanguard Total Bond Market II Index Fund Investor Shares 39.2%
Vanguard Total International Stock Index Fund Investor Shares 18.1%

It's now a good all-in-one lazy portfolio (nontaxable portion), in my opinion.
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Old 01-04-2012, 03:13 AM   #31
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LifeStrategy Fund [like the new changes in these funds] Wellesley,and a Short-Term Bond Fund.Thats all folks.
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Old 01-04-2012, 06:22 AM   #32
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VTTVX the ultimate lazy fund?
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Old 01-04-2012, 06:41 AM   #33
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If someone is looking for a one fund lazy portfolio I would recommend choosing between Wellington or Wellesley.
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Old 01-04-2012, 06:56 AM   #34
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Last year I put all my wife's money in Noobs slice and dice 6 fund portfolio at lazytraders.com. My own money is mostly vanguard index funds with a tilt to small cap and dividend funds, with more in total bond then in TIPS and a few individual stocks. Now my timinig was good for her's, but with no tweaking or watching or touching in any way, her's beat mine by a small amount. Even with the downside results in international stocks, I still like that set of funds. Simple, well diversified, little re-balancing required, and seems to cover all the bases. I just might move in that direction with my own investments this year.
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Old 01-04-2012, 09:22 AM   #35
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If someone is looking for a one fund lazy portfolio I would recommend choosing between Wellington or Wellesley.
I would agree except, it's only placing assets to take advantage of taxes that prevents me from doing so. If I didn't have sizeable tax sheltered holdings, I'd have no reason not to simplify and Wellington and Wellesley are clearly stellar choices. And even with taxable and tax sheltered accounts, it would not be hard to live with only 3-4 funds IMO (Tot Mkt, Tot Int, Tot Bonds for example).
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Old 01-04-2012, 10:37 AM   #36
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Lazy is the way we went after escaping from Ameriprise. Went from >20 funds to just 4 spread across 401k, taxable and IRA accounts.

Our returns are better in the lazy portfolio and obviously our expense ratios are much lower.

Even if I had the time to dabble in the market, I'd still go the lazy way...just don't have an interest in doing all of the required research.
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Old 01-04-2012, 11:01 AM   #37
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Sorry, that link did not work. But it seems everybody figured out what portfolios I was trying to get to. I guess they are not all that popular. I'm looking for a cookie cutter portfolio that will do me right for the duration without a lot of worrying.
I believe the 2nd grader portfolio works best for me. VTSAX, VTIAX, and VBTLX. These are the Admiral shares for Vanguards total stock, total int., total bond. AA at 35/15/50 to give you a 50/50 total stock to bond balance and extremely low ER of .11 Total diversification and very simple.
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Old 01-04-2012, 11:17 AM   #38
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I'm LAZY!

Most of my retirement costs will be covered by rent, SS and an annuity, and the rest of my portfolio is 10% cash and the rest divided evenly between, Vanguard Wellesley, Total Bond Index, Total Stock Market Index and Total International (or the equivalents in accounts from other providers)
Doesn't Wellesly and Total Stock hold some of the same funds or are you also using Wellesly for more yield?
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Old 01-04-2012, 07:59 PM   #39
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PRPFX has a very impressive return for the last decade. However, there are many critics doubt that such return will be repeated for the next decade.
Yes, there are a lot of criticisms about PRPFX; the most relevant one to this thread being that it doesn't closely enough model Harry Browne's permanent portfolio so results may not be akin to adhering to a purist version of his model. It has some REITs whereas Browne's is constructed as follows:

25% – Stocks (S&P 500 Index)
25% – Long Term US Treasury Bonds
25% – US Treasury Money Market Fund
25% – Gold

This link has results of a pure Browne portfolio constructed with ETFs (as well as others' interpretations) through 2011 so thought I'd post it. Nice to have results for such a long span, 1972-2011!
http://madmoneymachine.com/ßin right sidebar, see “2011 Lazy Portfolio Results’
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Old 01-05-2012, 08:01 AM   #40
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I have five different securities. Would only have four but my 401K doesn't have many options.

Vanguard Total Bond, High Yield Bond, Total Stock and Total International Stock (all Admiral shares)
Harbor Bond in 401k

Does that make me lazy?
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