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One Fund Portfolio

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  • Avatar Spudfin 
    Participant
    Status: Other Professional
    Posts: 3
    Joined: 03/30/2019

    Greetings

    I have been living Jim’s investment recommendations for nearly 30 years now and it works.  I will happily retire in about 3 years with enough money for a nice life.

    In an effort to make a simple portfolio even easier I read Jim’s blog on the Taylor Larimore’s 3 fund portfolio as well as the book.  Good idea but I am going to make it easier than that.

    Half of my money is now in VBIAX Vanguard Balanced Index Fund Admiral.  I plan on all of it being in that fund by the time I retire.

    I am happy with 60/40 split for the rest of my life and withdrawals will be easy.  No rebalancing.  Very thrifty.  Don’t care about international exposure.

    Any thoughts from the group?

    Kind Regards

    Spudfin

     

    #202356 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3789
    Joined: 01/08/2016

    Taxable account?

    #202368 Reply
    Avatar Simsima 
    Participant
    Status: Physician
    Posts: 17
    Joined: 05/07/2018

    Simplicity is good. You can put VTSAX in taxable and roth. It still keep things simple. Balanced fund is not good for taxable.

    #202382 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3789
    Joined: 01/08/2016

    its an OK plan.

    there a lot worse ideas.

    but i can think of a few better ones as well.

    #202385 Reply
    Liked by Vagabond MD
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1142
    Joined: 02/15/2016

    Mike Piper uses this strategy. Not terrible at all.

    #202386 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1067
    Joined: 02/15/2016

    Seems like a balanced fund with municipal bonds would be low-hanging fruit for Vanguard or another brokerage to create.

    #202387 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3789
    Joined: 01/08/2016

    Mike Piper uses this strategy. Not terrible at all.

    Click to expand…

    for those that want to read more:

    https://obliviousinvestor.com/my-portfolio-updated/

    #202389 Reply
    Liked by Tim
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3238
    Joined: 01/21/2016

    Seems like a balanced fund with municipal bonds would be low-hanging fruit for Vanguard or another brokerage to create.

    Click to expand…

    Vanguard has one:

    https://advisors.vanguard.com/web/c1/fas-investmentproducts/VTMFX

    I have used it for a long time. According to Bogle’s last book, it has not been very popular, a little bit of a bust, perhaps.

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #202408 Reply
    Liked by Lithium
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 949
    Joined: 02/11/2019

    bonds in taxable become less evil after retirement and a decrease in taxes no?

    “Never let your sense of morals prevent you from doing what is right.”

    #202459 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3789
    Joined: 01/08/2016

    bonds in taxable become less evil after retirement and a decrease in taxes no?

    Click to expand…

    depends on your expected marginal rate.

    this person is still working for 3 more years, then i likely expect should be doing Roth conversions.

    #202468 Reply
    Liked by ENT Doc
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 949
    Joined: 02/11/2019

    Not saying it is optimal just less bad.
    I forgot about Roth conversions. Yeah all that bond income would hamper that.

    “Never let your sense of morals prevent you from doing what is right.”

    #202479 Reply
    Avatar Spudfin 
    Participant
    Status: Other Professional
    Posts: 3
    Joined: 03/30/2019

    All non taxable

    #202604 Reply
    Liked by ENT Doc
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2253
    Joined: 01/03/2017

    I mean, a three fund portfolio is so incredibly simple already. But if you have big plans for the minutes a year it will save you, more power to you.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #202605 Reply
    Liked by JWeb, Lordosis, Peds
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1149
    Joined: 10/24/2016
    I will happily retire in about 3 years with enough money for a nice life.

    Click to expand…

    Congrats on this, btw.

    #202897 Reply
    mckee_cfa mckee_cfa 
    Participant
    Status: Financial Advisor
    Posts: 6
    Joined: 03/20/2019

    Congrats on your success and upcoming retirement. I can see the appeal of low cost, simple investing but few questions to consider…

    • I’m curious how or why you chose the 60/40 portfolio?
    • Why are you okay with your risk profile being generally the same regardless of your stage of life?
    • Why do you not care about international exposure? If you can increase your risk-adjusted returns with a more diversified portfolio, why wouldn’t you do so? The US is only about ¼ of world GDP.. plus that fund is not very diversified in terms of market cap – almost all is in large cap.  There are ETFs that are low cost and having more than one investment doesn’t really make things any more complex.
    • Have you given any thought to tax planning? How are these withdrawals going to affect your taxes? Wouldn’t you like to see if there is an easier and more tax efficient way to generate income?

    I am all for low cost, easy investing… but sometimes being thorough and efficient results in a much superior outcome.    

    Matthew McKee, MBA, CFA
    (615) 788-0572

    #203230 Reply

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