SpudfinParticipantStatus: Other ProfessionalPosts: 3Joined: 03/30/2019
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?
SpudfinMarch 30, 2019 at 5:29 am MST #202356
Taxable account?March 30, 2019 at 5:38 am MST #202368SimsimaParticipantStatus: PhysicianPosts: 17Joined: 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.March 30, 2019 at 6:31 am MST #202382jhwkr542ParticipantStatus: PhysicianPosts: 1079Joined: 02/15/2016
Mike Piper uses this strategy. Not terrible at all.March 30, 2019 at 6:44 am MST #202386LithiumParticipantStatus: PhysicianPosts: 1054Joined: 02/15/2016
Seems like a balanced fund with municipal bonds would be low-hanging fruit for Vanguard or another brokerage to create.March 30, 2019 at 6:48 am MST #202387
Mike Piper uses this strategy. Not terrible at all.Click to expand…
for those that want to read more:Vagabond MDParticipantStatus: PhysicianPosts: 3168Joined: 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:
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 YoungerLordosisParticipantStatus: PhysicianPosts: 776Joined: 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.”March 30, 2019 at 10:46 am MST #202459
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.LordosisParticipantStatus: PhysicianPosts: 776Joined: 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.”March 30, 2019 at 11:47 am MST #202479SpudfinParticipantStatus: Other ProfessionalPosts: 3Joined: 03/30/2019
All non taxableCordMcNallyParticipantStatus: PhysicianPosts: 2106Joined: 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 InvestoradventureParticipantStatus: SpousePosts: 1117Joined: 10/24/2016I will happily retire in about 3 years with enough money for a nice life.Click to expand…
Congrats on this, btw.April 1, 2019 at 9:13 am MST #202897mckee_cfaParticipantStatus: Financial AdvisorPosts: 6Joined: 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) 788-0572April 2, 2019 at 12:17 pm MST #203230