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Very near withdrawal what?
Old 06-27-2007, 08:52 AM   #1
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Very near withdrawal what?

I am at the point of setting up my "withdrawal phase" Vanguard portfolio. The below suggested portfolio is a 55/45 AA which suits my risk profile just fine. The current Dividend throw off is 3.55% which is slightly more than I actually need to draw. My question is whether I have sufficient diversity or oversubscribed in any particular fund? It appears ok but am I missing anything? This will suppliment a COLA'd pension and SS.

This is all in a tax deferred account:

Wellesley 44.00%
Total Stock 12.00%
Total Intnl 18.00%
Total Bond 16.00%
TIPS Fund 5.00%
REIT Fund 5.00%

Thanks for any input/suggestions

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Old 06-27-2007, 01:56 PM   #2
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Looks good to me. Of course, if you have taxable or other accounts, they should be factored in as well to see your overall allocation.

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Old 06-27-2007, 02:04 PM   #3
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is this all in a taxable account? obviously Wellesley might be slightly higher impact than other funds.

If you can live off dividends, I might suggest adding a money market fund to this mix, and direct all dividends to the money market. You'll earn some interest on this in the mean time.
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Old 06-27-2007, 02:47 PM   #4
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I assume that you also have a MMF in a taxable account to make distribution easier.

I find your inclusion of the Wellesley fund an interesting use of a bond-heavy balanced fund. Out of curiosity, why did you select it for such a large % (44) when you could have gotten a similar 55/45 mix just using the other funds?

Along with your COLAd pension and SS, this is a pretty nice conservative portfolio that should serve you well and insure many good nights of sound sleep.
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Old 06-27-2007, 03:04 PM   #5
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Looks good to me, especially the Wellesley part. When we finish transferring my wife's 403b to VG IRA her AA will be 50% Wellesley, 40% Star and 10% Asset Allocation Fund.
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Old 06-28-2007, 07:14 AM   #6
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I anticipated using Wellesley this way because I couldn't seem to come up with the higher dividend yield I was looking for by using a combo of the other TIPS/Bond funds. At least it didn't look as good when using X-Ray. I do have a MMF planned to sweep the dividends and capital gains into and rebalance from the MMF at least annually or if the MMF grows to more than 2 years worth of my annual spending requirements.

Thanks all for replying.....I was just looking for any real mis-steps that I could building into the portfolio inadvertantly.

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