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Vanguard Asset Allocation Advice
Old 03-16-2010, 09:35 PM   #1
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Vanguard Asset Allocation Advice

Hi,

I'm now convinced I should be in index after being flogged thoroughly and read a bunch. Here is where I landed....comments? (I live in OH):

12% Large Cap Index VLACX
12% Large Cap Value Index VIVAX
6% US Small Cap Index NAESX
6% US Small Cap Value Indx VISVX
6% REIT VGSIX
6% Total International Index VGTSX
6% FTSE All World ex/us VFSVX
6% Emerging Markets VEIEX
20% Total Bond Market Index VBMFX
10% Short Term Bond VBISX
10% Ohio Long Term Tax Exempt VOHIX


Thanks for the help!
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Old 03-16-2010, 11:18 PM   #2
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Ah, the ol' fundadvice slice-and-dice portfolio. It's OK if you like.

Let me ask you, would 4 funds for equities be OK versus your 8 funds?

25% each:
VTSMX
VISVX
VFWIX
VFSVX
??

Why or why not?
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Old 03-16-2010, 11:25 PM   #3
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BTW, your thread title reads like Vanguard gave you this asset allocation. Most assuredly, Vanguard did not. It wouldn't be Vanguarding.
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Old 03-17-2010, 06:03 AM   #4
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no, it is my own swizzle, not Vanguard Advice...thanks for clarification.
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Old 03-17-2010, 06:16 AM   #5
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Is your whole portfolio in a tax advantaged account? If not, how is it split out?
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Old 03-17-2010, 06:50 AM   #6
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this is all in a taxable account.....
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Old 03-17-2010, 11:56 AM   #7
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Quote:
Originally Posted by REattempt View Post
this is all in a taxable account.....
Do you have an IRA or 401(k) to hold your nonexempt bonds?
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Old 03-17-2010, 02:46 PM   #8
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I don't have an qualified plan I can put the bonds in, all of this is taxable.
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Old 03-17-2010, 04:58 PM   #9
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Looks an awful lot like a Bernstein AA, an approach that I agree with FWIW.
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Old 03-17-2010, 05:18 PM   #10
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I would not use a REIT fund in taxable. You did not mention your marginal income tax bracket either.

I would simplify the portfolio to the 4 equity funds I mentioned plus some fixed income funds. Those 4 funds get you almost all of that slice-and-dice/small-cap & value tilt that the portfolio you proposed has, but with much much less complexity. If you are using an advisor, they will love complexity. If you are doing this yourself, complexity is something to reduce.

I do not know the tax rates in Ohio, but you might use some US Treasury bond funds since Treasuries are exempt from state taxes.
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