For those who self-manage their nest egg - what funds do you use??

[sdtech]

Over the years I've pared down from many funds and stocks - I'm almost down to just one:


FZROX - Zero total market index


REIT's and International were very disappointing waiting years for them to just beat the market. Small cap tilts had too much volitility.



Life is simple now and I just ride the market with no fees. Good pension so I'm about 100% invested. Don't sell on news, only on lifestyle.

 

[WyomingLife]

Here's an old one... https://www.bogleheads.org/forum/viewtopic.php?t=191244

Thank you very much

 

[frayne]

Retired in 2005 at age 54 and have self directed investments ever since. Currently about half of portfolio is Fido's TSM and NASDAQ index funds and the balance in laddered CDs, MM sweep account and bank savings/checking account. Like sdtech, I pared my holdings down to just a couple of funds. Keeping it simple for numerous reasons but feel comfortable that if I pass before DW, she literally has to do nothing for years before making any financial decisions.

 

[Rustic23]

Moved to Fidelity last Feb. We do not depend on our investments for retirement. Most, all but taxes will go to the kids. Seventy percent is in IRA's and RMD's come out yearly. Currently our funds look like this.

International 15.0%
Real Estate 15.0%
SP500 30.0%
Emerging Mkts 10.0%
Treasuries 15.0%
Inflation Bonds 15.0%

Real Estate is the big looser right now, with SP500 and Bonds the winners. Is this a good mix, Heck, I really don't know. But it seems diversified, reasonably safe, and the horizon is between 10 and 20 years. I will rebalance in January, maybe, or maybe not. Rebalancing is a lot like w@rk!

 

[Ed_The_Gypsy]

These days, VIG, NOBL, & VWOB.

 

[HawaiiShrimp]

VTSAX - Vanguard Total Stock Market Index

In my opinion, that's all you need. A "Keep It Simple" strategy.

 

[Koolau]

VTSAX - Vanguard Total Stock Market Index

In my opinion, that's all you need. A "Keep It Simple" strategy.

Now, that IS simple!

Probably a good choice for equities but do you balance with bond fund(s) or cash-like products? Not quibbling, just curious. I'm more like 30% equities and have less gains to show, but still way ahead of the game after 15 years FIRE. I guess if you are young with a long time to FIRE, an all-in bet will eventually pay off in the stock market, so... YMMV

 

[gwix98]

Currently using all ETF’s and also own a couple stocks.
46%VTI
12% UTG
12%PGX
10%BIV
10%MSFT
10%AAPL

Has worked well for me. Pension and SS provide living expenses.

 

[Out-to-Lunch]

VTSAX - Vanguard Total Stock Market Index

In my opinion, that's all you need. A "Keep It Simple" strategy.

I totally agree with this. I also note that it won't get you from $11M to $30M in 10 years.

 

[HawaiiShrimp]

I totally agree with this. I also note that it won't get you from $11M to $30M in 10 years.

Absolutely true. VTSAX is a relatively safe investment. I used to go 100% in VTSAX. Sleep tight at night. Higher risk = High return. I am sure you know what I mean.

 

[Out-to-Lunch]

Absolutely true. VTSAX is a relatively safe investment. I used to go 100% in VTSAX. Sleep tight at night. Higher risk = High return. I am sure you know what I mean.

Yup. You do you, and I will do me. Carry on!

 

[HawaiiShrimp]

Now, that IS simple!

Probably a good choice for equities but do you balance with bond fund(s) or cash-like products? Not quibbling, just curious. I'm more like 30% equities and have less gains to show, but still way ahead of the game after 15 years FIRE. I guess if you are young with a long time to FIRE, an all-in bet will eventually pay off in the stock market, so... YMMV

I follow Jim Collins' advice on this one:

(If you want to smooth the ride)

If buying some bond funds make you sleep better at night, go for it. For me, bond funds keep me up at night 'cos it's not putting my money to work in the most efficient way; I go 100% stocks.

When it comes to bonds, I don't like owning it. My investment philosophy closely resembles Peter Lynch's approach: Buy good companies that I understand. You can listen to him here about mixing Stocks & Bonds @29:10 onward:

Best regards.

 

[Blue531]

Self manager here. Retired age 56. With each job I worked since 22 years ago, I would invest in the top 2 most aggressive performing funds available to me in my 401k. I would go by the highest 10 yr return %. I have four 401ks from 4 different jobs an IRA and an individual stock account. A few of the better performing funds this year are:

FXAIX Fid 500 INDEX F 15.39% YTD

TRLGX T ROWE PRICE Large cap gr 36% YTD

VHCAX VANGUARD cap opp adm 20%YTD

VINIX VANGUARD mkt ind 15.53 YTD

VIEIX VANGUARD ext mkt 28.64%

My individual stock fund YTD :
Realized Gain: 10.33%

Unrealized Gain: 555%

 

[rkser]

Blue,

What a wonderful job you have done, Great Discipline of saving & investing regularly !!

 

[Blue531]

To Rkser: Thank you so much for your encouragement and support! I am both proud and humbled. Mostly amazed, though, at how I got here so fast.

 

[ESRwannabe]

This is a followup of another thread I started last year ... "How many totally manage their own nest egg??"

For those who self-manage (do not use a FA service at all), what funds (or other investments) do you have your retirement nest egg invested in?

I am curious since, Vanguard and Fidelity Index funds seem to be highly popular. I am also curious about which index funds folks pick, and why.

Thanks.

In my 401k I use a global balanced fund of indexes run by my employer.

In my taxable brokerage account I use the ETF WisdomTree US High Yield (DHS). Its not perfect but it hits all my requirements, like paying monthly, which is hard to find.

I have around $600k in it, which should generate around $24k div income this year. Over the last decade the div growth averaged out to around 9% per year.

Once the div income reaches $30k I will be essentially financially independent.

 

[mountainsoft]

If buying some bond funds make you sleep better at night, go for it. For me, bond funds keep me up at night 'cos it's not putting my money to work in the most efficient way; I go 100% stocks.

100% stocks might be OK if you're in your 20's or 30's, as you will come out ahead in the long run. However, if you're nearing retirement you probably wouldn't want to lose 50% of your portfolio during a downturn.

As an example, compare a 100% VTSAX, vs a 60% VTSAX/40% VBTLX, vs a single fund VBIAX over the last 18 years:

https://www.portfoliovisualizer.com...ocation2_2=40&symbol3=VBIAX&allocation3_3=100

You may come out ahead in the end, but I sure don't have the stomach for that kind of volatility.

Compare your 100% VTSAX with a 50% VFIAX/50% VUSTX blend. Nearly the same end result, but a lot smoother ride:

https://www.portfoliovisualizer.com...location3_2=50&symbol4=VUSTX&allocation4_2=50

Of course, past results don't guarantee future returns...

 

[jpjr]

Self Managed Portfolio

VDIGX Dividend Growth 22%
VSCGX Lifetime Conservative Growth 34%
VGSTX Star Fund 24%
VSMGX Lifetime Moderate Growth 20%

Just about 60/40
15% International Stocks and Bonds in this mix of funds

 

[OldShooter]

... However, if you're nearing retirement you probably wouldn't want to lose 50% of your portfolio during a downturn ...

This is just a ghost story. Historically all downturns have been followed by recoveries. The only way an investor could lose 50% of a portfolio in a 50% downturn is to panic and sell everything. The real risk is SORR (not volatility) which might involve selling a fraction of a portfolio into a down market, but SORR is relatively easy to mitigate with a few years' burn rate in fixed income or cash. Obviously @HawaiiShrimp has made the judgment that FOMO is a bigger concern than SORR. His money, his judgment. Fine with me.

We are 73YO with AA 75/25 and our risk in actually losing 50% of our equity portfolio is IMO zero.

If I was a really good graphic artist I would create a cartoon blackboard with the sentence "Volatility is not risk." written 100 times.