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Any 50/50 Balanced Funds Out There ...?
12-20-2017, 01:43 PM
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#1
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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Any 50/50 Balanced Funds Out There ...?
The title makes the query.
I know about Vanguard's Tax-Managed Balanced Fund (50% big stocks/50% muni bonds, approximately); but it seems most balanced funds are lopsided one way or t'other. I wish Wellington Management had a fund like that somewhere; yes I know, I could have half Wellesley/half Wellington, but that seems inelegant somehow.
I'm looking for a quality, highly diversified 50/50 balanced fund with (hopefully) a phat yield to be my core holding in retirement. I'm lazy; I don't want to even think about rebalancing!
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12-20-2017, 02:06 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,226
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Is tax efficiency a concern? If so then it is best to build your own from index funds.
Otherwise 50% Wellesley/50% Wellington would do the trick or 50/50 Target Retirement 2015/2020.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56...target 65/35/0 AA TBD
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12-20-2017, 02:47 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,588
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Elegant solutions are impressive in the academic realm. Effective solutions are more practical out here in the jungle.
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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12-20-2017, 03:31 PM
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#4
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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My question stands ...
__________________
Don't just do something; stand there!
- Jack Bogle
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12-20-2017, 05:43 PM
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#6
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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Ooh! Thanks for that, RE2Boys. Definite candidate; also, AMJVX (American Century Multi-Asset Income Fund). The latter a bit like VPGDX (Vanguard Managed Payout Fund), but closer to 50/50.
__________________
Don't just do something; stand there!
- Jack Bogle
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12-20-2017, 05:52 PM
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#7
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Recycles dryer sheets
Join Date: Nov 2008
Location: Louisville
Posts: 346
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Out of curiosity, what's wrong with the Vanguard Tax Managed fund?
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12-20-2017, 06:36 PM
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#8
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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Quote:
Originally Posted by Masquernom
Out of curiosity, what's wrong with the Vanguard Tax Managed fund?
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Nada thing, actually! I like that the dividends are tax-free. But isn't the stock side concentrated in U.S. large-cap? ...
Actually, I'm going to give it another look.
__________________
Don't just do something; stand there!
- Jack Bogle
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12-20-2017, 06:59 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 5,999
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Quote:
Originally Posted by Lawrence of Suburbia
... I'm lazy; I don't want to even think about rebalancing!
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Often, the way we frame a problem precludes selecting the optimum solution.
You are already thinking about rebalancing. Would it be acceptable if you had to think again in twenty years? Probably. Every fiive years? Probably. Every month? Probably not. So we are just haggling about frequency.
Many of us rebalance once a year. Because of this we have access to a huge variety of vehicles. If we said "never" as you did in your problem statement, then we would be left, as you are, to scrape the barrel to find the tiny number of funds that may allow us to never rebalance. I'd encourage you to rethink your problem statement and consider the ten thousand or so fund options that you are eliminating by saying "never."
There are also some who get very spun up about tiny changes in AA. Really, if you look at some history you will see (IMO) that portfolios between 60/40 and 40/60 really haven't performed much differently. So AA can be done with a meat axe once a year IMO rather than with scalpel every month --- and the results won't be much different. Even every two years is probably enough frequency.
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12-20-2017, 07:10 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,226
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+1 How many angels can dance on the head of a pin?
As I recall, the success of anything between 45/60 and 60/40 are similar so I don't know what the magic of 50/50 is.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56...target 65/35/0 AA TBD
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12-20-2017, 07:40 PM
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#11
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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Actually ... heck widdit. Got most of my tax-deferred accounts in 60/40 (DODBX), the other half (taxable) I'm just gonna go Wellesley Admiral. #@$! rebalancing.
__________________
Don't just do something; stand there!
- Jack Bogle
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12-20-2017, 07:50 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,226
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If taxable and tax-deferred are also 50% each, why wouldn't you go with all stocks in taxable (tax preferenced income and capital gains) and all bonds in tax-deferred
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56...target 65/35/0 AA TBD
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12-20-2017, 07:55 PM
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#13
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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Quote:
Originally Posted by pb4uski
If taxable and tax-deferred are also 50% each, why wouldn't you go with all stocks in taxable (tax preferenced income and capital gains) and all bonds in tax-deferred
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I'll be in a very low tax bracket.
__________________
Don't just do something; stand there!
- Jack Bogle
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12-20-2017, 07:56 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,226
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Ah... got it.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56...target 65/35/0 AA TBD
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12-20-2017, 08:05 PM
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#15
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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With the new standard deduction, I may only owe tax on $2-3k of income.
__________________
Don't just do something; stand there!
- Jack Bogle
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12-20-2017, 10:30 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 6,809
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I am beginning to wonder if it wouldn't be smart to exceed MRD next year, invest it outside of our IRAs in something like BHKb. Our taxable income should be lower and I think income taxes will increase in a couple of years - about the time that our MRDs really ramp up when DH hits 80.
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Duck bjorn.
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12-20-2017, 10:43 PM
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#17
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Recycles dryer sheets
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 190
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Quote:
Originally Posted by Brat
I am beginning to wonder if it wouldn't be smart to exceed MRD next year, invest it outside of our IRAs in something like BHKb. Our taxable income should be lower and I think income taxes will increase in a couple of years - about the time that our MRDs really ramp up when DH hits 80.
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You lost me.
__________________
Don't just do something; stand there!
- Jack Bogle
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