Which 40% stock portfolio would you choose?

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lks
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Which 40% stock portfolio would you choose?

Post by lks »

LifeStrategy Conservative Growth or 75% LifeStrategy Income plus 25% Small Cap, Value.
miles monroe
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Re: Which 40% stock portfolio would you choose?

Post by miles monroe »

neither, but if i had to choose i'd go with the conservative growth. the other option has 2/3 of your equity exposure in small cap value which doesn't make sense to me.
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Taylor Larimore
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Which is more important--higher return or avoiding low retur

Post by Taylor Larimore »

lks wrote:LifeStrategy Conservative Growth or 75% LifeStrategy Income plus 25% Small Cap, Value.
lks:

Assuming this is your only account and it is tax-advantaged, I would select the single diversified fund designed by Vanguard Experts (Life Strategy Income) for its 1-fund simplicity.

Adding more overlapping funds might result in slightly better return (with higher risk), but it could also result in lower return.

For most of us, avoiding lower return is more important than getting the same amount of higher return.

There is more than one road to Dublin.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
rleonardh
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Re: Which 40% stock portfolio would you choose?

Post by rleonardh »

lks wrote:LifeStrategy Conservative Growth or 75% LifeStrategy Income plus 25% Small Cap, Value.
Maybe if you wanted the, LifeStrategy Income plus something, I would do TSM 25%. Just a thought, it would boster the equility side, however why not choose the 60/40 LifeStrategy?
Frans
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Re: Which 40% stock portfolio would you choose?

Post by Frans »

Definitely small value stocks. You may want to read my article: https://drive.google.com/file/d/0ByZzqh ... sp=sharing
in combination with intermediate-term government bonds in a 40/60 or other combination depending on your risk tolerance.
mastermike707
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Re: Which 40% stock portfolio would you choose?

Post by mastermike707 »

Frans wrote:Definitely small value stocks. You may want to read my article: https://drive.google.com/file/d/0ByZzqh ... sp=sharing
in combination with intermediate-term government bonds in a 40/60 or other combination depending on your risk tolerance.
Your paper is very interesting. I have come to some similar conclusions regarding the typical 3 fund portfolio here. I am really curious about mid cap value stocks as well. I found that data seemed to support similar return with less volatility than small caps. Maybe you could run some numbers with them and compare the results.
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joe8d
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Re: Which 40% stock portfolio would you choose?

Post by joe8d »

LS Conservative Growth.
All the Best, | Joe
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LadyGeek
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Re: Which 40% stock portfolio would you choose?

Post by LadyGeek »

Frans' article is discussed in this thread: The Two-Fund SVIT Portfolios - Higher Returns and Lower Risk

Further comments can be discussed there.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Frans
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Re: Which 40% stock portfolio would you choose?

Post by Frans »

mastermike707 wrote:
Frans wrote:Definitely small value stocks. You may want to read my article: https://drive.google.com/file/d/0ByZzqh ... sp=sharing
in combination with intermediate-term government bonds in a 40/60 or other combination depending on your risk tolerance.
Your paper is very interesting. I have come to some similar conclusions regarding the typical 3 fund portfolio here. I am really curious about mid cap value stocks as well. I found that data seemed to support similar return with less volatility than small caps. Maybe you could run some numbers with them and compare the results.
mastermike707, Ladygeek suggested that we continue the discussion on my article to the referenced thread. I'll post an answer there.
BigJohn
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Re: Which 40% stock portfolio would you choose?

Post by BigJohn »

Be aware that there is substantial disagreement on whether a small cap value tilt is truly beneficial. You'll see some of this in the thread from Lady Geek. You might also read these threads to get some feel for the diversity of opinion.

http://www.bogleheads.org/forum/viewtop ... 0&t=141809

http://www.bogleheads.org/forum/viewtop ... 0&t=140243

You'll see in these threads that I am not a fan of SCV tilting but many are. If you go in that direction you need to understand the risks involved and go in with your eyes wide open.
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
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