I just received my online report from VG. My phone appointment is for May 24th. This thing is 13 pages long so I'll try to give it in a nutshell.
Before I get into numbers......the first surprise was that they suggest I completely do away with my cash reserves (mainly MM Prime) and plow that into their mix. I did mark "retired" for myself and wife on their form.*
They are (as expected) suggesting a stock/bond mix of 60/40.
As it stands now I'm 40% stocks, 23% bonds, and 37% cash. I'm aware that 37% cash is a bit much and have been using a modified DCA to lower that number......although cash is not a bad deal these days.
The funds they suggested (non IRA) were pretty much what I expected. Essentially a consolidation of funds like Index 500, Wellington, GNMA, etc. into Total Stock Market Index and Total Bond Index.
They also suggested raising my international stocks from 3% to 12%.......not a bad idea, and something I'm working on.
I had marked our traditional IRA funds as something I did not want to change, but will be open to discussion on them during the phone consultation.
They are: Primecap, WindsorII, and Explorer.
Something I found interesting. They evaluated my current portfolio with thier suggested allocation:
Average total return (1960-2005): Mine.....8.3%* theirs.....9.4%
Volatitlity.......Best single year........Mine......21.1% theirs....29.6%
* * * * * * * * * * *Worst single year......Mine.....-8.4%* *theirs....-17%
Number and percentage of years with loss: Mine: 7 of 46 (15.2%)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *Theirs 11 of 46 (23.9%)
Will check back after the phone session. In the mean time ......any thoughts?
Thanks
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