Hi all,
In this article, William Bernstein states that Vanguard Target Retirement funds could/should be juiced up with the addition of small value, large value, and REIT index funds (he does not give specific percentages):
Holy Grail
I have about 30 years until "normal" retirement age (65) although hope to FIRE, and have 1/2 my stash invested in Vanguard Target Retirement 2035 which has the following holdings as of 12/31/07:
71.9% Total Stock Market Index
10.1% Total Bond Market Index
10.0% European Stock Index
4.40% Pacific Stock Index
3.60% Emerging Markets Stock Index
Questions:
1) Do you think Vanguard Target Retirement Funds need to be "juiced up" with additional asset classes or tilts, or are they "perfect" as is (i.e. don't mess with the recipie)?
2) If you're in the "juicer" camp, say you had $200,000 in Vanguard Target Retirement 2035, what other asset classes/tilts would you juice it with and why, and how much would you put in each?
I like the auto-balancing balanced-index approach, but wonder if the Vanguard TR funds are missing any important ingredients.
Very interested in your thoughts and opinions on this. Thanks.
- Dude
In this article, William Bernstein states that Vanguard Target Retirement funds could/should be juiced up with the addition of small value, large value, and REIT index funds (he does not give specific percentages):
Holy Grail
I have about 30 years until "normal" retirement age (65) although hope to FIRE, and have 1/2 my stash invested in Vanguard Target Retirement 2035 which has the following holdings as of 12/31/07:
71.9% Total Stock Market Index
10.1% Total Bond Market Index
10.0% European Stock Index
4.40% Pacific Stock Index
3.60% Emerging Markets Stock Index
Questions:
1) Do you think Vanguard Target Retirement Funds need to be "juiced up" with additional asset classes or tilts, or are they "perfect" as is (i.e. don't mess with the recipie)?
2) If you're in the "juicer" camp, say you had $200,000 in Vanguard Target Retirement 2035, what other asset classes/tilts would you juice it with and why, and how much would you put in each?
I like the auto-balancing balanced-index approach, but wonder if the Vanguard TR funds are missing any important ingredients.
Very interested in your thoughts and opinions on this. Thanks.
- Dude