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.
As you can tell by my screen name, one of my favorite retirement planning books is
The Armchair Millionaire by Lewis Schiff & Douglas Gerlach.
My previous employer switched our 401(k) into Vanguard right about the time I read that book so I set up my Vanguard account in accordance with the "Armchair Millionaire" portfolio which was:
33% Vanguard 500 Index Fund
33% Vanguard Small-Cap Index Fund
and 33% Vanguard International Growth Fund
(these were the funds available in my plan that were the closest match to the ideal Armchair Millionaire portfolio)
I kept it invested like that (100% stocks) for over 15 years. Then, as I'm getting closer to retiring, I've been adding Vanguard bond funds into the mix. For the next few years I switched to:
25% Vanguard Institutional Index Fund Institutional Shares
25% Vanguard Small-Cap Index Fund Institutional Shares
25% Vanguard International Growth Fund Admiral Shares
and 25% Vanguard Total Bond Market Index Fund Institutional Shares
(The institutional shares and Institutional Index Fund changes were from Vanguard. As my accounts increased in value I became eligible for and moved into lower-cost index funds)
At the beginning of 2020 I got to the point where I was about 5 years out from when I'd like to retire so according to my IPS (Investment Policy Statement) I switched it to:
20% Vanguard Institutional Index Fund Institutional Shares
20% Vanguard Small-Cap Index Fund Institutional Shares
20% Vanguard International Growth Fund Admiral Shares
and 40% Vanguard Total Bond Market Index Fund Institutional Shares for a 60/40 stock/bond mix.
That's what worked for me. Everything seems to be going to my plan from 20 years ago and I'm hoping to retire either shortly after my 55th B-day or January 1st of that year.