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Old 10-08-2010, 01:59 AM   #21
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You could go with a diversified slice and dice portfolio with a 30/70 equity/fixed ratio:

20% VTSAX Vanguard Total Stock Mkt Admiral Shares, ER=.07%

4% VEUSX Vanguard European Stock Index Admiral, ER=.16%

4% VPADX Vanguard Pacific Stock Index Admiral, ER=.16%

2% VGSLX Vanguard REIT Index Admiral, ER=.13%

30% VBTLX Vanguard Total Bond Index Admiral, ER=.12%

30% VFSUX Vanguard Short Term Invstmt Grade Admiral, ER=.12%

10% Cash/CDs/Money Market (your choice)

Broadly diversified, blended ER of around .10%, conservative asset allocation. I don't believe Total Intl Stock is available in Admiral Shares class so suggested European and Pacific funds.

One option, many ways to go that would be fine.
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Old 10-08-2010, 07:15 AM   #22
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Originally Posted by yakers View Post
DW's IRA is 65% VG Wellesley and 35% VG Star fund. Not that Wellesley is the best place for everything but it has several points in its favor: it has a long record that does not look likely to radically change, they seem to have a good selection of bonds that I could not get on my own, very rarely lose money (but they can), they are a very simple solution so my wife can manage the funds without me.
Two years from retirement, probably a longer term for withdrawals, sure I would use Wellesley for part of a portfolio, the question would be how to 'enhance' a Wellesley core portfolio. In our case we added the Star fund, you might want to add short/intermediate bond funds for safety.
Thanks for the thoughts on this. It seems to be a sane approach and you make a very good point on the wife being able to maintain with it if I should pass. She is not into the finances at all and it would overwhelm her if I went back to my old investment methods of single equities and bonds. I will have a look at the star fund as well. Again thanks for the advice.
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Old 10-08-2010, 07:19 AM   #23
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Originally Posted by califdreamer View Post
You could go with a diversified slice and dice portfolio with a 30/70 equity/fixed ratio:

20% VTSAX Vanguard Total Stock Mkt Admiral Shares, ER=.07%

4% VEUSX Vanguard European Stock Index Admiral, ER=.16%

4% VPADX Vanguard Pacific Stock Index Admiral, ER=.16%

2% VGSLX Vanguard REIT Index Admiral, ER=.13%

30% VBTLX Vanguard Total Bond Index Admiral, ER=.12%

30% VFSUX Vanguard Short Term Invstmt Grade Admiral, ER=.12%

10% Cash/CDs/Money Market (your choice)

Broadly diversified, blended ER of around .10%, conservative asset allocation. I don't believe Total Intl Stock is available in Admiral Shares class so suggested European and Pacific funds.

One option, many ways to go that would be fine.
more good thoughts on the subject!! It still keeps the money spread over many points and is easier if the wife takes over!!! Thank you! I knew you guys would come up with some good thoughts. Am still trying to find the CD that is best. Anyone know what the penalty for early withdrawal on the PenFed CD is?
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Old 10-08-2010, 01:10 PM   #24
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Anyone know what the penalty for early withdrawal on the PenFed CD is?
Page 2, mainly paragraph "h" but plenty of fine print in its other paragraphs:
https://www.penfed.org/pdf/accountsforms/688.pdf
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Old 10-08-2010, 01:34 PM   #25
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Page 2, mainly paragraph "h" but plenty of fine print in its other paragraphs:
https://www.penfed.org/pdf/accountsforms/688.pdf
Looks like Ally Bank is better as they have a good rate and if you happen to take out early the penalty only amounts to 60 days interest.
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Old 10-08-2010, 02:48 PM   #26
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I recently read, and recommend, All About Asset Allocation (2nd edition, 2010) by Rick Ferri. Lots of other great reading suggestions on this forum but I found this book particularly helpful.
Picked it up on Amazon for Kindle PC and am getting into it now. Thanks for the reference it looks interesting for sure.
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Old 10-08-2010, 11:08 PM   #27
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Picked it up on Amazon for Kindle PC and am getting into it now. Thanks for the reference it looks interesting for sure.

You're very welcome and enjoy the book. I liked it a lot. And best of luck with your decision.
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Old 10-09-2010, 01:39 PM   #28
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Stocks are way cheap relative to bonds right now, so I would definitely avoid bonds now.

Buffett recently said this about the the stock bond price relationship:
Buffett: Why Own Bonds When You Can Own Equities? -- Seeking Alpha
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Old 10-19-2010, 01:56 AM   #29
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If you go into bonds, do so gradually. I agree with the other members' warnings. Moving a lump sum into bonds now is fighting history and reversion to the mean.
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