notsure wrote:Paul (tibbitts), thank you very much for your reply. Just to confirm, are you suggesting that I do not necessarily need a bond allocation? From reading the forum, I'm aware that a bond allocation is recommended firstly to avoid reacting unwisely to ones portfolio value plummeting in a crash, and secondly to sell bonds to buy stocks cheaply when rebalancing ones allocation during a crash. But if an all stocks portfolio doesn't miss out on return, perhaps that is the best solution in my situation.
The I-bond education benefit might be useful for my wife and me but we don't have children yet. Hopefully my situation isn't too complex for forum members to understand, since there seem to be so few Vanguard Funds I can invest in! I suppose it's a question of whether a 10% bond allocation held in the Vanguard Total Bond Market ETF is worthwhile in a portfolio with a long-term horizon that is exclusively held in a taxable account.
snowman wrote:As far as buying VT only and be done with it, it certainly is an option, and not a bad one. I don't do it myself mostly for the reason you outlined - ER. My spreadsheet keeps track of current AA very accurately, so new funds get invested to restore balance, it's super easy. For me personally, VT would have to be cheaper than VTI/VXUS combo to even consider investing in it.
snowman wrote:Since everyone's situation and risk tolerance is different, it's impossible for me (or anyone else) to recommend the right course of action. You may want to give yourself a deadline of say 2-3 years from now to come up with glide path for adding bonds to your portfolio. There are different ways to approach it, so it may not make sense to just come up with some numbers now without further education. There is no rush - in investing, the slower you go, the better.
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