Vanguard financial plan experience

[WilliamG]

Retired in 2000 and have done the Vanguard plan around 3 times. Also have a friend who retired a couple of years later that has done the same. Their shelf recommendation has evolved. First time the strategy was more slice and dice and balanced index/managed funds. Problem: I think they offset Windsor II large value with US Growth; a bad choice for several years. Overall target was to mimic broad market. Later used Diversified Equity fund as the "managed" broad market counterpart to TSM. Another bad choice.

We just completed our latest session. Have finally relented and gone mostly Total Market and Total International, but have held on to our 30% allocation to Wellesley. To "counterbalance" Wellesley they suggested a combo of Growth Index and Extended Market Index. We stayed with TSM because we want the slight value tilt. We have Total Bond Index in Roth but complement Wellesley bonds with GNMA and Short Term IG.

Concerning cash, we used to include our cash in overall portfolio but are now following the Vanguard "pattern"; i.e., periodic withdrawals for spending needs are removed from the portfolio being managed for investment. The timing and amount of withdrawal to cash can vary to suit your demeanor as Rich noted above.

[walkinwood]

My experience is similar to the OP.
Their advice amounted to tweaks on my plan, so I never followed through on any recommendations.

[mickeyd]

Quote:

Originally Posted by easysurfer Why did the CFP's suggest no cash?

As I recall that process, you (the client) list your assets during the data accumulation process and indicate which ones you do not want to be included in the plan analysis. I recall "xing" out PMMF, STB fund and cash savings. This is why the CFP would not recommend MMF for my AA. Perhaps that's the deal with the OP also.