Very near withdrawal what?


Dryer sheet aficionado
Jul 19, 2005
I am at the point of setting up my "withdrawal phase" Vanguard portfolio. The below suggested portfolio is a 55/45 AA which suits my risk profile just fine. The current Dividend throw off is 3.55% which is slightly more than I actually need to draw. My question is whether I have sufficient diversity or oversubscribed in any particular fund? It appears ok but am I missing anything? This will suppliment a COLA'd pension and SS.

This is all in a tax deferred account:

Wellesley 44.00%
Total Stock 12.00%
Total Intnl 18.00%
Total Bond 16.00%
TIPS Fund 5.00%
REIT Fund 5.00%

Thanks for any input/suggestions
Looks good to me. Of course, if you have taxable or other accounts, they should be factored in as well to see your overall allocation.
is this all in a taxable account? obviously Wellesley might be slightly higher impact than other funds.

If you can live off dividends, I might suggest adding a money market fund to this mix, and direct all dividends to the money market. You'll earn some interest on this in the mean time.
I assume that you also have a MMF in a taxable account to make distribution easier.

I find your inclusion of the Wellesley fund an interesting use of a bond-heavy balanced fund. Out of curiosity, why did you select it for such a large % (44) when you could have gotten a similar 55/45 mix just using the other funds?

Along with your COLAd pension and SS, this is a pretty nice conservative portfolio that should serve you well and insure many good nights of sound sleep.
Looks good to me, especially the Wellesley part. When we finish transferring my wife's 403b to VG IRA her AA will be 50% Wellesley, 40% Star and 10% Asset Allocation Fund.

I anticipated using Wellesley this way because I couldn't seem to come up with the higher dividend yield I was looking for by using a combo of the other TIPS/Bond funds. At least it didn't look as good when using X-Ray. I do have a MMF planned to sweep the dividends and capital gains into and rebalance from the MMF at least annually or if the MMF grows to more than 2 years worth of my annual spending requirements.

Thanks all for replying.....I was just looking for any real mis-steps that I could building into the portfolio inadvertantly.
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