Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Minimum Mutual Fund Investments
Old 11-06-2019, 01:32 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 148
Minimum Mutual Fund Investments

OK this may be a really stupid question, but if I invest the minimum initial deposit of $25,000 in PIMIX in my Vanguard account, if I withdraw some funds and it goes below this amount, there is no penalty, right? Also I am not sure about subsequent purchases like reinvesting dividends and capital gains into this fund from my other Vanguard funds. Do subsequent purchases have to be a certain amount? Will I be charged a commission on each deposit or withdrawal?

Also does it make sense to spread cash out between PIMIX Pimco Income Fund, FVISX Short Term Treasury Fund, VFSTX Short Term Bond Fund and/or VBTLX Total Market Bond Fund?
__________________

klucich 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 Early-Retirement.org 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 11-06-2019, 02:13 PM   #2
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,646
Quote:
Originally Posted by klucich View Post
... Also does it make sense to spread cash out between PIMIX Pimco Income Fund, FVISX Short Term Treasury Fund, VFSTX Short Term Bond Fund and/or VBTLX Total Market Bond Fund?
When you don't know where you're going, any road witll get you there. What problem are you trying to solve? Diversification? Some kind of tilt? Or ??
__________________

OldShooter is offline   Reply With Quote
Old 11-06-2019, 02:19 PM   #3
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 148
Quote:
Originally Posted by OldShooter View Post
When you don't know where you're going, any road witll get you there. What problem are you trying to solve? Diversification? Some kind of tilt? Or ??
Yes.

Well I want to set some money aside for my bond allocation. I will also use this money to complete my annual draw amount over and above div and cg. I don't need that much, but want to make sure it is still there if we have an extended downturn.
klucich is offline   Reply With Quote
Old 11-06-2019, 02:33 PM   #4
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,646
Quote:
Originally Posted by klucich View Post
... to make sure it is still there if we have an extended downturn.
Well if that is the main objective, which DW and I share, then TIPS are the answer. Ideally held in a tax-sheltered account as individual bonds.

The nice thing about TIPS, IMO, is that there really is no significant yield curve so no need for laddering. When we retired our judgment was that our only significant risk was future high inflation. So in 2006 and 2007 we bought a bunch of the longest, lowest coupon, TIPS that were available: 2s of 2026. Longest to minimize screwing around, lowest coupon to minimize reinvestment risk.

With TIPS we give up a few tens of basis points yield, but I view that the same way I view the fire insurance premium on our house. Worth it for the protection we get. I don't think wild inflation or a major house fire are in our future, but I still like having the insurance.
OldShooter is offline   Reply With Quote
Old 11-06-2019, 03:35 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 23,396
Quote:
Originally Posted by klucich View Post
Yes.

Well I want to set some money aside for my bond allocation. I will also use this money to complete my annual draw amount over and above div and cg. I don't need that much, but want to make sure it is still there if we have an extended downturn.
Sounds like you are looking for a CD ladder for your estimated amounts in excess of your annual draws over dividends and capital gain distributions... you could overestimate and if the maturing CD is more than you need that year then just put the excess on a new CD at the end of the ladder.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is online now   Reply With Quote
Old 11-07-2019, 05:51 AM   #6
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 148
Quote:
Originally Posted by pb4uski View Post
Sounds like you are looking for a CD ladder for your estimated amounts in excess of your annual draws over dividends and capital gain distributions... you could overestimate and if the maturing CD is more than you need that year then just put the excess on a new CD at the end of the ladder.
Yes I have been reading a lot about having a combination of High Yield Savings, Short Term CDs, Treasury Bills and Short Term Bond Funds. I would like to put some into PIMCO Income Fund PIMIX though and I understand it is going to follow the market movement somewhat so I was also looking at VFISX Short Term Treasuries, VFSTX Vanguard Short-Term Investment-Grade Inv, VBTLX TTL Bond Mkt and VTAPX ST Inflation Protected Sec.
klucich is offline   Reply With Quote
Vg pas
Old 11-07-2019, 02:27 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 6,251
Vg pas

Klucich,

You bring up many thoughtful questions. Without us being aware of your full financial situation, it's darn-near impossible to offer good advice. Why not look into Vanguard PAS? The cost only 30bps and you can ask them thoughtful Qs like these.

https://investor.vanguard.com/financ...:CLT:FAS:6:SCP
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 11-07-2019, 05:29 PM   #8
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 3,646
Quote:
Originally Posted by klucich View Post
... I would like to put some into PIMCO Income Fund PIMIX ... I was also looking at VFISX Short Term Treasuries, VFSTX Vanguard Short-Term Investment-Grade Inv, VBTLX TTL Bond Mkt and VTAPX ST Inflation Protected Sec.
Why are you drawn to such complex portfolios? Repeating the earlier question, I don't understand what problem you are trying to solve.
__________________

OldShooter is offline   Reply With Quote
Reply


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
Vanguard Slashes Minimum Investments on 27 Funds, Including Primecap FANOFJESUS FIRE and Money 1 05-11-2011 10:01 AM
Fund or broker with very low minimum? Onward FIRE and Money 15 12-12-2010 02:44 PM
Lingo: Stock fund vs Mutual Fund Sam FIRE and Money 9 05-26-2006 11:44 AM
Hedge fund-like mutual fund: SWHEX brewer12345 FIRE and Money 2 11-01-2005 02:29 PM

» Quick Links

 
All times are GMT -6. The time now is 09:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×