Over the last few weeks I have been thinking about my portfolio allocation. I have had a slice and dice ETF portfolio for at least the last decade and have been thinking about moving to an all in one mutual fund or perhaps two. The slice and dice portfolio doesn't seem to do any better than an all in one mutual fund.
Here is my current allocation:
The thought is move to equal parts of the following funds:
Vanguard LifeStrategy Moderate Growth Fund (VSMGX)
Vanguard LifeStrategy Growth Fund (VASGX)
This would put me at approximatly 40% US stock, 30% international, and 30% bonds. The returns have been remarkably similar to my current portfolio but is obviously more of a set and forget style. For those interested here is the various portfolio compared: link
Benefits:
1. Hands Off
2. Wife can easily understand if something happens to me.
3. Can increase or decrease allocation to one fund or the other to easily change bond allocation.
Drawbacks:
1. I like Fidelity (two factor authentication with VIP Access)
2. Capital Gains (also a benefit of doing it now.. only more capital gains in the future)
3. Boring
What would you do? I am 36 years old and my wife is 32. The portfolio just surpassed 500K a few months ago and would have probably 100K in capital gains. Also, this probably doesn't matter, but I have 4 more years until I am eligible for a military pension.
Here is my current allocation:
Total Bond Market | 21.39% | |||||||||
TSP G Fun | 4.62% | |||||||||
Emerging Market | 10.80% | |||||||||
Regional - Pacific | 10.80% | |||||||||
Regional - Europe | 10.81% | |||||||||
United States REIT | 9.15% | |||||||||
United States Small Cap Value | 10.81% | |||||||||
United States Large Cap Blend | 10.81% | |||||||||
United States Large Cap Value | 10.81% | |||||||||
The thought is move to equal parts of the following funds:
Vanguard LifeStrategy Moderate Growth Fund (VSMGX)
Vanguard LifeStrategy Growth Fund (VASGX)
This would put me at approximatly 40% US stock, 30% international, and 30% bonds. The returns have been remarkably similar to my current portfolio but is obviously more of a set and forget style. For those interested here is the various portfolio compared: link
Benefits:
1. Hands Off
2. Wife can easily understand if something happens to me.
3. Can increase or decrease allocation to one fund or the other to easily change bond allocation.
Drawbacks:
1. I like Fidelity (two factor authentication with VIP Access)
2. Capital Gains (also a benefit of doing it now.. only more capital gains in the future)
3. Boring
What would you do? I am 36 years old and my wife is 32. The portfolio just surpassed 500K a few months ago and would have probably 100K in capital gains. Also, this probably doesn't matter, but I have 4 more years until I am eligible for a military pension.