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Any 50/50 Balanced Funds Out There ...?
Old 12-20-2017, 01:43 PM   #1
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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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Old 12-20-2017, 02:06 PM   #2
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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.
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Old 12-20-2017, 02:47 PM   #3
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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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Old 12-20-2017, 03:31 PM   #4
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My question stands ...
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Old 12-20-2017, 03:50 PM   #5
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Fidelity Asset Manager 50%

FASMX
https://fundresearch.fidelity.com/mu...mary/316069103

50/40/10

Morningstar 5*

Heavy into Treasurys
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Old 12-20-2017, 05:43 PM   #6
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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.
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Old 12-20-2017, 05:52 PM   #7
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Out of curiosity, what's wrong with the Vanguard Tax Managed fund?
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Old 12-20-2017, 06:36 PM   #8
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Out of curiosity, what's wrong with the Vanguard Tax Managed fund?
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.
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Old 12-20-2017, 06:59 PM   #9
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... I'm lazy; I don't want to even think about rebalancing!
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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Old 12-20-2017, 07:10 PM   #10
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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.
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Old 12-20-2017, 07:40 PM   #11
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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.
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Old 12-20-2017, 07:50 PM   #12
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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
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Old 12-20-2017, 07:55 PM   #13
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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
I'll be in a very low tax bracket.
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Old 12-20-2017, 07:56 PM   #14
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Ah... got it.
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Old 12-20-2017, 08:05 PM   #15
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With the new standard deduction, I may only owe tax on $2-3k of income.
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Old 12-20-2017, 10:30 PM   #16
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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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Old 12-20-2017, 10:43 PM   #17
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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.
You lost me.
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