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Vanguard Asset Allocation Advice
03-16-2010, 08:35 PM
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#1
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 293
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Vanguard Asset Allocation Advice
Hi,
I'm now convinced I should be in index after being flogged thoroughly and read a bunch. Here is where I landed....comments? (I live in OH):
12% Large Cap Index VLACX
12% Large Cap Value Index VIVAX
6% US Small Cap Index NAESX
6% US Small Cap Value Indx VISVX
6% REIT VGSIX
6% Total International Index VGTSX
6% FTSE All World ex/us VFSVX
6% Emerging Markets VEIEX
20% Total Bond Market Index VBMFX
10% Short Term Bond VBISX
10% Ohio Long Term Tax Exempt VOHIX
Thanks for the help!
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03-16-2010, 10:18 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: Jun 2005
Posts: 10,252
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Ah, the ol' fundadvice slice-and-dice portfolio. It's OK if you like.
Let me ask you, would 4 funds for equities be OK versus your 8 funds?
25% each:
VTSMX
VISVX
VFWIX
VFSVX
??
Why or why not?
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03-16-2010, 10:25 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: Jun 2005
Posts: 10,252
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BTW, your thread title reads like Vanguard gave you this asset allocation. Most assuredly, Vanguard did not. It wouldn't be Vanguarding.
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03-17-2010, 05:03 AM
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#4
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 293
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no, it is my own swizzle, not Vanguard Advice...thanks for clarification.
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03-17-2010, 05:16 AM
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#5
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Is your whole portfolio in a tax advantaged account? If not, how is it split out?
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03-17-2010, 05:50 AM
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#6
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 293
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this is all in a taxable account.....
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03-17-2010, 10:56 AM
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#7
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Mar 2007
Posts: 14,328
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 Quote:
Originally Posted by REattempt
this is all in a taxable account.....
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Do you have an IRA or 401(k) to hold your nonexempt bonds?
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03-17-2010, 01:46 PM
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#8
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 293
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I don't have an qualified plan I can put the bonds in, all of this is taxable.
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03-17-2010, 03:58 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: Jan 2008
Location: NC
Posts: 21,303
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Looks an awful lot like a Bernstein AA, an approach that I agree with FWIW.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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03-17-2010, 04:18 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: Jun 2005
Posts: 10,252
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I would not use a REIT fund in taxable. You did not mention your marginal income tax bracket either.
I would simplify the portfolio to the 4 equity funds I mentioned plus some fixed income funds. Those 4 funds get you almost all of that slice-and-dice/small-cap & value tilt that the portfolio you proposed has, but with much much less complexity. If you are using an advisor, they will love complexity. If you are doing this yourself, complexity is something to reduce.
I do not know the tax rates in Ohio, but you might use some US Treasury bond funds since Treasuries are exempt from state taxes.
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