The Very Best

[MasterBlaster]

If you could chose but one single mutual fund to keep someones money in what would it be ?

This person will probably retire relatively young in a few years. Money is likely to fund a retirement lasting 2 to 4 decades. I have my own ideas but would enjoy your views.

What one fund would you choose and why ?

 

[aimhigh]

if it had to be 1 fund then lifecycle fund . But why only one fund?

 

[BigMoneyJim]

VG LifeStrategy Moderate Growth. It holds a mix of low-fee broad indexes that cover the asset classes I want in about the allocation I want. My least favorite fund in there is Asset Allocation because it's actively managed, but I've learned to live with it. I'm using LS MG as my main fund and use other funds to fine tune the asset allocation to my wants, but I would be happy with it all by itself. I chose this over a Target Retirement fund because I've decided not to increase bond allocation over time.

 

[unclemick]

Pssst-Wellesley.

What tax bracket are we talking?

I of course am consolidating ALL my dribs and drabs(trad IRA) into Vanguard Target Retirement 2015 - cause I'm 62 and young at heart.

age 49-62 the big dog was VG Lifestrategy moderate.

heh heh heh

Male and hormonally speaking - killing off the DRIPs and puting my Norwegian widow/putz/kayak stocks into a VG brokerage account.

 

[MasterBlaster]

But why only one fund?   - Just to keep the discussion centered. Everyone has an asset allocation. Why not find a fund that does it for you.

Per the LifeStrategy and Target Retirement funds - Look at all those bonds ! Do you really want that much bond allocation !

What tax bracket are we talking?   -  25 percent Federal Bracket on highest income

 

[justin]

One of the lifestrategy funds. Probably LS Moderate Growth. Should have 30-55% bonds/cash long term due to the Asset Allocation fund which can switch from stocks to bonds to cash.

Maybe LS Growth fund. 10-35% bonds long term. I'd pick this one for me personally (I'm a little more comfortable with risk). I'd recommend the LS moderate growth for a generic investor given the parameters you specified.

My assumption is retired for avg. of 30 years, die around 80, which means ER at age 50. I personally wouldn't want to be too heavy in bonds at that age.

 

[cute fuzzy bunny]

I have to ask the most important question.

Best for what?

Low volatility? High current yield? High terminal value? Low tax load or dont care? Is there other income besides the portfolio?

If low volatility, high current yield and not really caring about the tax load are the big drivers, Unclemicks suggestion of Wellesley, or a target retirement income or lifestrategy income port are good ones. If you dont care about volatility or current yield (ie, will sell shares to fund retirement as you go), you have a large sized portfolio (more than 25x annual spending needs) and want a low tax load, then a fund of principally high dividend paying value stocks like windsor II would do the trick.

For something in the middle, the balanced index fund, wellington, or a target retirement 2025-2035 or lifestrategy moderate growth type fund would do.

 

[unclemick]

(CFB) - and anyone else who likes his avatar - Carol Wright 38DDD arrived today.

I posted my single fund - cause that's the one I use - for me after 12 yrs in ER. Note - Trad IRA(tax issues) age 62 - need to damp SD so's I can slip funds out at hopefully regular chunks at regular intervals. Side money is Roth conversion - in case I don't croak precisely at 84.6(60/40ish LS - perhaps too conservative) AND the Norwegian widow stocks - betting on the cum(old New Orleans slang) that 15% div tax rate 'may' still be around.

As pointed out - each of us has a slightly different situation.

Walter Winchell - 'now for the rest of the story'

P.S. I asked for a before and after modeling session with the Carol Wright's.

Heh heh heh heh - no dice. Rats!



Postscript -8:45 Central Time - only 1/2 Rats - fit's good - itch a little - need one wash cycle to fix that.

 

[sgeeeee]

I think everyone should invest all their money in the SG Total Rip-Off Fund. The goal of the fund is . . . well, you know what the goal is. I promise the fund will achieve it's goal.

 

[cute fuzzy bunny]

(CFB) - and anyone else who likes his avatar - Carol Wright 38DDD arrived today.

Sorry Mick, but this post is USELESS without photos.

 

[Irwin41]

Vanguard Star

 

[unclemick]

Sorry Mick, but this post is USELESS without photos.

Sorry (CFB) - the good ones are in Lake Ponchartrain. Not about to take any new ones - I value my life(minor heir after my sister).

Besides - reality would destroy my "missoula" myth.

Aka - does unclemick 'really' exist!!!

heh heh heh heh heh heh

P.S. - VG Star might be ok if you lean toword 'slice and dice'

 

[Brat]

I would choose a balanced fund. Look at the 'life cycle' funds (Vanguard and Fidelity), read Forbes Fund review and the no-alarm balanced funds at www.fundalarm.com

Oakmark and Dodge & Cox are my favorites.

 

[ladelfina]

board jargon

What is this "slice and dice" of which you speak?
Did a search but without really finding a definition.

Also, these widows from Norway: do they have requirements that regular garden-variety 'merican widows don't? I thought in Norway they were big on social services.

 

[cute fuzzy bunny]

Slice and dice = slicing up your portfolio into multiple asset classes.

example: 10% to foreign bond, 15% to reit, 20% to foreign large cap.

Vs buying a simple balanced or life strategy type fund

 

[ladelfina]

Thanks, Bunny! now I'm really feeling the love!!

 

[cute fuzzy bunny]

Cute fuzzy bunny gives you more love than most. You need it, you have a substandard computer...

 

[ESRBob]

Ladelfina,
Not sure anyone but Uncle Mick can really tell you what the Norwegian Widow is all about -- but no thread is complete without her! I think it has something to do with someone a long time ago loving dividend-paying stocks for the long run...

 

[Brat]

widows from Norway

As the gggrandchild of one, they have cultured a reputation for income oriented investing.  In the 'old country' Mom managed the money and ran the farm, Dad fished or worked in the woods.  FYI there is a tug company in the Pudget Sound founded by a Norwegian wife whose husband went to Alaska during the gold rush.  She made more $$$.

 

[ladelfina]

you have a substandard computer.

Silly Rabbit!

Oddly, I don't feel that way, especially after reading the recent "Computer Problem" and "Bad Year for Electronics" posts. Sounds like the machines are cheaper, but require a lot of intervention and don't last very long. I don't make much use of a laptop, but if you're going to have to buy one every two years, instead of every three or four, you've kind of wiped out the cost savings (tho' it is fun to have a shiny, new machine.. do they make "new computer smell" in a spray can like they do for cars?)

OOOH how happy am I, to give nary a thought to FAT32, or BIOS, or IRQ farts. (I hear Maalox might work on those).

P.S. did you come up with that list of OSX viruses yet?

 

[cute fuzzy bunny]

But you dont have the details! My recent Death Of A Laptop was a machine that I paid a couple of hundred dollars for new, and lasted over three years! I'm composing this on a six and a half year old IBM thinkpad! My mother in law is still using my five year old Toshiba downstairs for web surfing and family email, which should continue to serve her well for at least a few more years.

Dont forget, i've owned both. I did no more or less "fiddling" with the macs than the windows machines.

On the PS, yes I've seen a boatload of stuff, including a nice article written by a fellow in the NSA about how many "old" security holes are in the OSX and Linux base codes that were fixed in militarized versions of unix but the fixes are still trickling out for OSX and Linux. For the most part, there are many vulnerabilities, just not enough systems for the bad guys to warrant bothering about causing trouble with.

I decided you were too nice to rub stuff like that in your face, so I didnt bother. After all, you're already struggling with that substandard computer

Now, if you were to upgrade to a nice new core duo mac, I think many of your problems would be solved...

 

[ladelfina]

think many of your problems would be solved...

Mm, that would be nice.. but right now my 'problem' is remodeling the kitchen.
Ka-ching!

 

[cute fuzzy bunny]

Then we agree!

 

[ladelfina]

Just to get the thread back on track:

Why not find a fund that does it for you.

Because it costs money.

If you know what you want the allocation to be, and are going to stick with it, you'll just buy ETFs and/or bonds and not pay the higher mgmt fees of a fund.

--
..she says merrily doing her kitchen drawings in Freehand on her super-silent Mac mini.. If there was anyone gonna see it, I'd put a sign over my desk: "This workplace virus-free for 5,475 days."

I bow to your superior knowledge, your Fuzziness, but I'm not worried like the NSA needs to be worried. All's I know is, gee, shucks... I personally haven't needed to bullet-proof my little computers for years and probably won't for some time to come, so I'm happy as a clam in mud. Did you "fiddle" just 'cause you like "fiddling"?  .. I take you for a born fiddler !  

 

[cute fuzzy bunny]

How do you know its virus free?

And yes, i'm a born fiddler, among other things...