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One Fund VTI Portfolio
Old 01-31-2015, 06:46 AM   #1
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One Fund VTI Portfolio

My target AA is 55/45. My "bond/fixed asset allocation is some 400k in a future (4 years) DB Pension Plan that is very stable. I am not worried it won't be around when the time comes to either take the montly annunity or the lump sum. I am considering putting my entire stox allocation in the Vanguard Total Stox Market ETF. That along with 3-4 years cash to avoid selling stox in a bear market. Your thoughts?
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Old 01-31-2015, 07:25 AM   #2
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I have VTI and it is a great total US market. That means you have your assets distributed based on market capitalization. Many people that index supplement this with small caps, REITs and some foreign exposure. This creates a broader portfolio.
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Old 01-31-2015, 07:25 AM   #3
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If you can stand the volatility and the pension pays enough for living expenses, I'd say your plan is sound. I'd probably chose the Total World fund for even better diversification but who knows.
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Old 01-31-2015, 07:32 AM   #4
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If you can stand the volatility and the pension pays enough for living expenses, I'd say your plan is sound. I'd probably chose the Total World fund for even better diversification but who knows.
+1 Note, however that Vanguard will not send you a birthday card.
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Old 01-31-2015, 07:51 AM   #5
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Just moved away from my FA that charged 1 point. Trying to simplify and manage costs. Between pensions and SS 85% of my target income in retirement will be covered leaving a 2.5% WR from the remaining portfolio.
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Old 01-31-2015, 12:13 PM   #6
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With a 2.5% WR you should do fine. Good move dropping your advisor. No need for anyone to siphon off 1% of your portfolio year in year out unless of course they can do better than your chosen index. Highly doubtful.
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Old 01-31-2015, 01:06 PM   #7
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I'd also prefer Total World (VT). That's one of the benchmarks I use, and I'd consider it if I wanted to simplify.
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Old 01-31-2015, 11:06 PM   #8
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I have VTI and it is a great total US market. That means you have your assets distributed based on market capitalization. Many people that index supplement this with small caps, REITs and some foreign exposure. This creates a broader portfolio.
+1 , I highly recommend VTI as at least part of a core set of holdings.

I have it plus a bunch of other stuff that I'm slowly going to cull, while I increase my VTI and foreign exposure.
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Old 02-04-2015, 03:55 AM   #9
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vti is to close to just an s&p 500 fund to be considerd a total market investment. even in the best of times for mid caps and small caps it sees 1% or less in difference.

if i really wanted good diversified market coverage i would never use vti alone.

i would couple it with an extended market fund and season to taste.

historically every time we have a time frame like 2014 where the s&p 500 gets all the attention it has taken at least 5 years of underperformance for the s&p 500 to ring out the excess.

my bet this year and i will state it for the official record here will be an out performing year for the mid-caps which have much better valuations now with lower risk than the small caps. i would consider vti and a mid cap index ..

i would tweak the the mid-cap index market portion up hiigher than the vti portion for now.
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Old 02-04-2015, 02:46 PM   #10
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Not quite as simple as VT, but allows a bit more control over the large/small and US/foreign breakdown. Use these 4 in whatever percentages you prefer:

VTI (essentially US large)
VXF (US small)
VXUS (foreign large, includes some emerging)
VSS (foreign small)

Larry
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