Achiever51
Thinks s/he gets paid by the post
- Joined
- Feb 28, 2007
- Messages
- 1,015
I invite any and all comments. Here goes:
I've been invested in Vanguard for one year now and am scheduled for my annual review with their CFP next Monday. As I'm not interested in income right now, but would like to grow the portfolio, I've expressed interest in increasing my stock exposure to about 70% from my current 60% while decreasing bonds from 40% to 30%.
BTW - I am retired but am not drawing anything from this portfolio now. My non-COLA'd pension covers about 75% of our current monthly expenses, with the remainder coming from my husband's income and other savings. The earliest I might start to withdraw from the portfolio is 3.5 years from now and would likely draw no more than 3%. While working I was ineligible for a ROTH due to income limits, so portfolio is in a traditional IRA but I am investigating the possibility of moving some assets to a ROTH over time.
Current portfolio consists of:
41.1% - VG Total Bond Market Index Fund (Admiral Shares) VBTLX
21.4% - VG Diversified Equity Fund VDEQX
18.9% - VG Total Shock Market Index Fund (Admiral Shares) VTSAX
10.9% - VG Total International Stock Index Fund VGTSX
7.62% - VG Emerging Markets Stock Index Fund
According to M*, my current portfolio holds:
1.70% - Cash
38.07% - U.S. Stock
20.17% - Foreign Stock
39.54% -Bonds
0.52% - Other
Avg. Expense Ratio is 0.20% and Yield is 3.09%
Vanguard has proposed two possible portfolios for me, and frankly, both seem like a distinction without much difference to me.
Proposal 1, called Integrated Portfolio, recommends the following:
35.01% - VG Total Bond Market VBTLX
22.74% - VG Diversified Equity Fund VDEQX
22.74% - VG Total Stock Market VTSAX
10.94% - VG Total International Stock Index Fund VGTSX
5.74% - VG Developed Markets Index Fund VDMIX
2.80% - VG Emerging Markets Stock Index Fund VEIEX
M* says this portfolio would hold:
1.68% - Cash
42.52% - U.S. Stock
20.97% - Foreign Stock
34.39% - Bonds
0.44% - Other
Avg. Expense Ratio is 0.19% and Yield is 2.99%
Proposal #2, called Consolidated Portfolio, would hold the following:
35.0% - VG Total Bond Market Index Fund VBTLX
26.0% - VG Diversified Equity Fund VDEQX
26.0% - VG Total Stock Market Index VTSAX
13.0% - VG Total International Stock Index VGTSX
M* says this portfolio would hold:
1.80% - Cash
48.57% - U.S. Stock
14.98% - Foreign Stock
34.40% - Bonds
0.25% - Other
Avg. Expense Ratio is 0.19% and Yield is 2.91%
What do you think? What would you do if you wanted this portfolio to grow over the next 3 to 5 years? Thanks for any suggestions.
I've been invested in Vanguard for one year now and am scheduled for my annual review with their CFP next Monday. As I'm not interested in income right now, but would like to grow the portfolio, I've expressed interest in increasing my stock exposure to about 70% from my current 60% while decreasing bonds from 40% to 30%.
BTW - I am retired but am not drawing anything from this portfolio now. My non-COLA'd pension covers about 75% of our current monthly expenses, with the remainder coming from my husband's income and other savings. The earliest I might start to withdraw from the portfolio is 3.5 years from now and would likely draw no more than 3%. While working I was ineligible for a ROTH due to income limits, so portfolio is in a traditional IRA but I am investigating the possibility of moving some assets to a ROTH over time.
Current portfolio consists of:
41.1% - VG Total Bond Market Index Fund (Admiral Shares) VBTLX
21.4% - VG Diversified Equity Fund VDEQX
18.9% - VG Total Shock Market Index Fund (Admiral Shares) VTSAX
10.9% - VG Total International Stock Index Fund VGTSX
7.62% - VG Emerging Markets Stock Index Fund
According to M*, my current portfolio holds:
1.70% - Cash
38.07% - U.S. Stock
20.17% - Foreign Stock
39.54% -Bonds
0.52% - Other
Avg. Expense Ratio is 0.20% and Yield is 3.09%
Vanguard has proposed two possible portfolios for me, and frankly, both seem like a distinction without much difference to me.
Proposal 1, called Integrated Portfolio, recommends the following:
35.01% - VG Total Bond Market VBTLX
22.74% - VG Diversified Equity Fund VDEQX
22.74% - VG Total Stock Market VTSAX
10.94% - VG Total International Stock Index Fund VGTSX
5.74% - VG Developed Markets Index Fund VDMIX
2.80% - VG Emerging Markets Stock Index Fund VEIEX
M* says this portfolio would hold:
1.68% - Cash
42.52% - U.S. Stock
20.97% - Foreign Stock
34.39% - Bonds
0.44% - Other
Avg. Expense Ratio is 0.19% and Yield is 2.99%
Proposal #2, called Consolidated Portfolio, would hold the following:
35.0% - VG Total Bond Market Index Fund VBTLX
26.0% - VG Diversified Equity Fund VDEQX
26.0% - VG Total Stock Market Index VTSAX
13.0% - VG Total International Stock Index VGTSX
M* says this portfolio would hold:
1.80% - Cash
48.57% - U.S. Stock
14.98% - Foreign Stock
34.40% - Bonds
0.25% - Other
Avg. Expense Ratio is 0.19% and Yield is 2.91%
What do you think? What would you do if you wanted this portfolio to grow over the next 3 to 5 years? Thanks for any suggestions.