Balanced Fund, Keep My Own Allocation or Simplify?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
53timr
Posts: 216
Joined: Sat Dec 27, 2014 3:27 pm

Balanced Fund, Keep My Own Allocation or Simplify?

Post by 53timr »

.....
Last edited by 53timr on Fri Jan 16, 2015 9:20 pm, edited 1 time in total.
“I take my investment advice from my dentist, because he’s just as likely to lose me money as a financial advisor.” | ― Jarod Kintz, This Book Title is Invisible
User avatar
saltycaper
Posts: 2650
Joined: Thu Apr 24, 2014 8:47 pm
Location: The Tower

Re: Balanced Fund, Keep My Own Allocation or Simplify?

Post by saltycaper »

I would simplify.

Your 1% EM and 3% IB are unlikely to influence your returns much.

Cash will always reduce your standard deviation, for better or worse depending on market ups and downs. (Not saying you shouldn't have cash.)

Don't worry about beating another fund. Just worry about your objectives, risk tolerance, tax consequences, etc.

Consider one of Vanguard's target date or life strategy funds that fits your desired stock/bond allocation so you can worry less about making the smaller allocation decisions.

A 3/4 fund port is also good. Just resist the urge to tinker too much.
Quod vitae sectabor iter?
jimkinny
Posts: 1856
Joined: Sun Mar 14, 2010 1:51 pm

Re: Balanced Fund, Keep My Own Allocation or Simplify?

Post by jimkinny »

Your most important decision is how much stock vs bonds you have. I would consider jettisoning any allocation under 10%, except for cash, if that is your emergency stash.

My guess is that some of the funds you looked at that did better than your personal return did so because of a higher equity allocation.

Jim
Lafder
Posts: 4127
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: Balanced Fund, Keep My Own Allocation or Simplify?

Post by Lafder »

Are these tax advantaged retirement accounts, or taxable accounts you are using for retirement?

If in nontaxable retirement accounts, a one fund approach would make things MUCH simpler for you to manage.

If these are taxable accounts, holding the multiple funds allows you to tax loss harvest if ever possible. (This may be very unlikely with gains on long time holdings).

If these are held in a combination of taxable/nontaxable you can list all of your holdings here for more feedback like this http://www.bogleheads.org/forum/viewtop ... f=1&t=6212

I agree with the comments already made that regardless of the type of accounts, you can greatly simplify your fund holdings. The small % do not likely add enough gain or diversity to justify the extra hassle of managing more funds.

Best wishes,
Lafder
Laura
Posts: 7975
Joined: Mon Feb 19, 2007 6:40 pm

Re: Balanced Fund, Keep My Own Allocation or Simplify?

Post by Laura »

Long term bonds are more like equities because they are so volatile so while you say you have 55% in stocks the reality is you are probably closer to a risk level of 60% stocks or even more.

Laura
The views presented are my own and not necessarily those of the Department of State or the U.S. Government.
Post Reply