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20% of my retirement portfolio is international.

Equity (60%) 12% VXUS-Vanguard Total International Stock ETF
Fixed Income (40%) 8% BNDX-Vanguard Total International Bond ETF

The following are the options for my significant other's 401K. All Target Funds were removed. Would like a 70% in stock and 30% in Bonds. Neither the 70% nor the 30% have to be in just 1. It can be divided between 2-3 if need be. Also, the 70% should be in the one with the highest potential return even if it is higher risk. Would prefer to avoid any World/Foreign options too. Any recommendations? Sorry, I tried formatting the following but when submitting my changes, it all gets screwed up and makes it hard to read. Name-----------------------------------Inception Date---------------------------------------Gross Expense Ratio** LIFECYCLE FUNDS DODGE & COX INT SK X (DOXFX)------05/01/2001--------Stock Investments-------------- 0.57% DOD...

I've been thinking about how to create a robust financial plan for retirement that addresses the major financial risks. I've been thinking of financial risks as falling into three categories: Market risk: risk that real market returns will be less than expected Expense risk: risk of unforeseen expenses (spending shocks related to medical, kids, house, etc.) Longevity risk: risk of living longer than anticipated For those who are in retirement or contemplating retirement, which risks have you most concerned and why? How does your financial plan for retirement address or mitigate each of these? Any other categories of risk you are worried about in retirement? Very simple Bogleheads Investment Philosophy Prepare to invest Live below your mean...

Around $2,000 in case family or friends need to borrow a few dollars.

Because of the low-quality of funds (High ERs) available in your 401k I would suggest you contribute only the amount to get the 5% match and then open a Roth and max that out.

Hopefully some day you will have access to a higher quality 401k plan with low-cost fund options.

Good luck.

$200 after monthly expenses are paid.

@retirementclass2021 3. This is my first year since I retired in 2021 that I started withdrawing from my portfolio. I use a Total Return withdraw with DRIP system. There are a few conversations regarding bucket vs total return. Regarding frequency, I was on two calls this past fall with Colleen Jaconetti (Senior Analysist @ Vanguard) and she suggested a monthly withdraw strategy. She also suggested a 5% target rebalancing strategy. Could you explain what you mean by 5% target rebalancing strategy or point somewhere for more info? Thanks! Rebalancing target means you rebalance when your desired allocations moves -/+ at a set percentage which in my case is 5%. Example, a 60/40 portfolio would be rebalanced when it shifts to either 65/35 or 5...

Emergency funds: $70,000 cash Debt: $22,000 remaining on mortgage at 3% interest Married Filing Jointly Tax Rate: 12% Federal, 5% State State of residence: Massachusetts Age: me 65, husband 64 Desired Asset allocation: 60% stocks / 40% bonds Desired International allocation: 5% of stocks Approximate size of total portfolio: 1.1M His Rollover IRA at American Funds: 1.3% American High-Income Trust (AHITX) ER 0.69% 5.5% Capital Income Builder (CAIBX) ER 0.59 5.2% Intermediate Bond Fund of America(AIBAX) ER 0.63% 8.4% The Investment Company of America (AIVSX) ER 0.57% 6.7% New Perspective Fund (ANWPX) ER 0.72% 2.2% SMALLCAP World Fund (SMCWX) ER 1.01% Note: Each of the above show additional expenses beyond ER Her 401K through Fidelity: 26% Lar...

The 3 fund portfolio does not discriminate. It is good for everyone. The contents consist of:

*Total U.S. Stock Market index MF/ETF
*Total International Stock Market Index MF/ETF
*Total U.S. Bond Market Index MF/ETF

Allocation of this portfolio is where everyone differs depending on your risk tolerance. The big three Investment brokerages (Fidelity, Vanguard and Schwab) provide access to the types of funds mentioned above.

What is great about the 3 fund strategy is whether you are in the accumulation or decumulation stage of your life this strategy and funds will serve you well.

What ever allocation you chose the most important key to its success is Stay the course.

+1 with the_wiki's post.

The low-cost of VINIX is going to outperform the DODGX fund in the next 36-41 years (estimated time of your son's retirement).

Jack Bogle's Rule 6 for Investment Success: Minimize the Croupier’s Take

mamani wrote: ↑Tue Jan 24, 2023 7:38 pm My dad started me on a Roth IRA with Dodge & Cox, and I've been contributing to it for over 15 years now. Recently, I've begun doing more research on investing with low cost index funds. I currently have Roth IRA investments in DODGX/stock, DODFX/international, DODBX/balanced, and DODIX/income funds. They have all been good investments, but the expense ratios are .51%, .62%, .51%, and .41%. Based on what I've read, having low expense ratios and turn-over, should I / can I switch to a new investment company for my Roth IRA?

If you want to move your Roth to Fidelity, Vanguard or Schwab give one of them a call and they will walk you through the transfer procedure. You then can convert you present funds into funds of your choice.

The best solution is option 4-DIY with no adviser pulling doen returns by charging fees. 2-4 index funds and be done with it. Could you please give me an example of 2,3,4 fund portfolio? Like I said, I’m still learning and have some ideas, but I want to make sure I’m on the right track. Diversified low-cost portfolio consisting of passive (Non-actively managed) index mutual funds or ETF funds: 2 Fund Total Stock Market Fund - Includes U.S. and Non-U.S. investments Total Bond Market Fund - Includes U.S. and Non-U.S. investments 3 Fund Total U.S. Market Fund Total Intl Market Fund Total U.S. Bond Fund 4 Fund Total U.S. Market Fund Total Intl Market Fund Total U.S. Bond Fund Total Intl Bond Fund Fidelity, Vanguard and Schwab have these funds ...

That the brokerage firm that holds my retirement portfolio would go under and all my money
would be gone. They are still in business .

outlierZ wrote: ↑Mon Jan 23, 2023 7:37 pm

RetirementClass2021 wrote: ↑Sun Jan 22, 2023 8:47 pm For a diversified low-cost "Total Stock Market" equity portfolio I would chose:

Fid 500 Index 68%
Fid Mid Cap Idx 8%
Fid SM Cap Idx 4%
Fid Intl Index 20%

I noticed you do not have bond options. Something to re-visit when you reach your 50s (within 10-15 years of retirement)

Good luck.

Thank you! What's the rationale of putting 8% to Mid and 4% to Small cap fund - to gain less volatility in the portfolio?

Adding the the Fid Mid Cap and Fid Small Cap funds to the Fid 500 fund creates a "U.S. Total Market All-Cap" exposure. Your 100% (80% U.S./20% Intl) equity portfolio breaks down as follows:

80% U.S.
68% (85% Large Cap)
8% (10% Mid Cap)
4% (5% Small Cap)

20% Intl
20% (100% All Cap)

VTI holdings: 3995 companies
VOO holdings: 509 companies

VTI wins out

If you have access to a 401k plan with your employer you should be contributing to that. I would recommend investing in the low-cost index funds in that plan. If available:

*Total U.S. Stock Market fund
*Total Intl Stock Market fund
*Total U.S. Bond market fund

Allocation of these funds should depend on your time line to retirement. Being 49 and lets say your goal is to retire at 65 then I would suggest a 56%/14%/30% allocation of the fund types I mentioned above.

The amount to contribute every pay period to your 401k plan should be the max amount you could while still being able to meet your family budget needs comfortably without ever having to reduce your 401k plan contribution limit.

Good luck.

FYI for those who requested a check. It took 50 days to receive.

Requested on line on 11/28. Received on 01/17.

For a diversified low-cost "Total Stock Market" equity portfolio I would chose:

Fid 500 Index 68%
Fid Mid Cap Idx 8%
Fid SM Cap Idx 4%
Fid Intl Index 20%

I noticed you do not have bond options. Something to re-visit when you reach your 50s (within 10-15 years of retirement)

Good luck.

Hi All, I am in my mid-20s and recently discovered this forum. I would like to embrace the Boglehead way going forward as I no longer have the time to actively manage my portfolio and also do not want to get eaten alive by actively managed fund expense ratios. However, I am a bit torn on how/when to rebalance my investment accounts. The general goal is to automate my investments going forward to low-cost indexes that closely mimics the Boglehead diversification strategy. Two questions: 1. What funds would you recommend in each of the accounts and the ideal % allocations? 2. Should I be selling and buying the new allocation in a big rebalancing effort, or slowly trying to get close by redirecting new investments over time? I would appreciat...

I plan to retire in two years and want to simplify my IRA and employer 401k portfolio. According to Bogleheads, a portfolio of 3-4 Vanguard index funds provides me all the diversity I need. If (1) I am comfortable with allocation and rebalancing annually, (2) a tax advisor advises me on withdrawal rates and Roth backdoor conversions, and (3) I will self-fund my long-term care, what is left for a Vanguard or Fidelity financial advisor to do to earn a 0.3% fee? Nothing. If the 3-4 index funds you are referring to are Total U.S. Stock Market, Total International Stock Market, Total U.S. Bond and Total International Bond Market then you would be well-diversified in a low-cost portfolio. There is not a FA that could do anything better for you a...

The Clash Of The Cultures Investment vs. Speculation - Chapter 9-Ten Simple Rules For Investors And A Warning For Speculators

https://johncbogle.com/wordpress/wp-con ... 05/c09.pdf

You are so very welcome.

I consider my 60/40 portfolio as Moderate Growth.

My Plan: - Move the Traditional and Simple into the new 401k target date fund. - Create a Roth account at Fidelity, move the Roth over there. - At fidelity do a simple 3 fund of FSKAX, FTIHX, FXNAX. - I plan to try and max the Roth out. Questions: - Given my options, is the plan above a good plan? Yes it is. Simplicity is king. - I could use some advice on what percent to do for those funds, FSKAX - 40%, FTIHX - 20%, FXNAX - 40%? I don't mind having to do some rebalancing in the future. I am open to other funds to consider as well. I still have my vanguard account as well if I wanted to go with their funds. I did not invest in bond funds until I was 54 (5 years before I retired). With that being said I would invest in FXNAX now but at a ma...

My Plan: - Move the Traditional and Simple into the new 401k target date fund. - Create a Roth account at Fidelity, move the Roth over there. - At fidelity do a simple 3 fund of FSKAX, FTIHX, FXNAX. - I plan to try and max the Roth out. Questions: - Given my options, is the plan above a good plan? Yes it is. Simplicity is king. - I could use some advice on what percent to do for those funds, FSKAX - 40%, FTIHX - 20%, FXNAX - 40%? I don't mind having to do some rebalancing in the future. I am open to other funds to consider as well. I still have my vanguard account as well if I wanted to go with their funds. I did not invest in bond funds until I was 54 (5 years before I retired). With that being said I would invest in FXNAX now but at a max...

In retirement 60/40 portfolio value dropped 13.05% in 2022.

Happy New Year to you all!!!

At midnight tonight I will have completed my first year of retirement. As of market close yesterday my 60/40 portfolio value dropped by 13.05%.

Happy New Year all!!!

Monthly Total Return withdraw w/DRIP strategy coupled with a Target (5% +/-) Rebalancing strategy.

To control spending I draw for expenses only with a cash/checking account excess max of $200 at all times.

My favorites SGOV (0-1 month) .05% ER is nice - this is my money market substitute unless holding floating rate TFLO or USFR SHV (0-12 month) .15% ER OBIL (1 yr T bill) - new, would need to watch NAV vs. price and spreads to make sure you don't over pay with a market order .15% ER VGSH (1-3 yr treasuries) Never heard of treasury floating rate bonds before. Can you help me understand what are TFLO and USFR, and when/why would one use those over SGOV? 2 yr treasury floating rate notes. They trade at a spread to the 3 month T bill. They have outperformed SGOV by .3% over the past year and SHV by about 1% +1 for USFR. https://www.wisdomtree.com/investments/etfs/fixed-income/usfr. I have had it since January. 100% U.S. Treasury, 100% AAA Grade ...

2023 will be the first year after retiring in 2021 that I will begin drawing monthly from my portfolio.

I have decided to use a Total Return w/DRIP strategy coupled with a Target (5% +/-) Rebalancing strategy. To control spending I am going to draw for expenses only with a cash/checking account excess max of $200 at all times.

Happy New Year to all!

Merry Christmas

Unbrokenspark wrote: ↑Fri Dec 23, 2022 2:30 pm I just rolled over my 401k to vanguard IRA’s. Should I wait to invest it till we see how 2023 plays out? Or just put it in?? Hmmmm

When the markets open again next Tuesday login to your IRA account and invest it all in your preferred allocation of low-cost diversified index funds. Make sure the allocation you choose is one you can stomach through market roller coaster rides without one thought of changing it.

VictorStarr wrote: ↑Fri Dec 16, 2022 6:35 pm

anon_investor wrote: ↑Fri Dec 16, 2022 6:31 pm

VictorStarr wrote: ↑Fri Dec 16, 2022 6:29 pm I use a Fidelity brokerage as my “checking account” and keep $5K - $20K in FZDXX MM yielding 4.10%. I transfer extra money to my investment account at Fidelity.

In my “real” checking accounts I keep low balances - $100 at BofA and $300 at Chase.

How did you get FZDXX with less then $100k?

A couple of years ago I bought FZDXX in my investment account and transferred FZDXX fund into other accounts (brokerage and CMA).

Did you buy FZDXX in an tIRA and then have it transferred into your CMA? If so, what were the steps you took to do this? Thanks!

Raspberry-503 wrote: ↑Mon Dec 12, 2022 4:08 pm
I currently invest in INt's bonds (BNDX)

I also invested in BNDX. According to Portfolio Analyzer I am glad I did.

David Jay wrote: ↑Mon Dec 12, 2022 11:37 am

RetirementClass2021 wrote: ↑Sun Dec 11, 2022 5:20 pmRegarding Saturdays & Sundays, I have lost the concept of weekends.

I try to remember weekends so I don’t go grocery shopping on Friday night or Saturday. What a zoo.

Monday through Friday morning grocery shopping with no crowds rocks! Give it a try.

I am using the Total Return drawdown strategy including DRIP.

Retiring at 59 I did not realize that 90% of adults were not going to be available for conversation until
early evening and Saturdays & Sundays. Regarding Saturdays & Sundays, I have lost the concept of
weekends. At first it was an adjustment but after two/three months I became immune to it.

Other than the above, life it great. Enjoyable and relaxing.

Has anyone purchased the Fidelity MM Fund FZDXX in a Fidelity IRA ($10,000 min investment) and had it transferred to their Fidelity Cash Management account?

I would like FZDXX in my CMA but do not want to pull $100,000 from my IRA to purchase it. I am hoping to hear from someone who successfully processed this work around. Otherwise I will stay
with SPRXX.

Thanks!

+1 No one knows.

Further, no one can tell you. If you are well diversified in a low cost portfolio then staying put is your best chance for a successful accumulation and drawdown financial life.

Stay the course.

$145.28
YouTube TV $64.99
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Verizon mobile $30.30

39 years old with an estimated 21-26 years before retirement?

Dump VSIAX and go all in with 80% VTSAX and 20% VTIAX and enjoy your working life.

When you get to about 10 to 5 years before your desired retirement age consider some Fixed Income.

Tool's 2019 release - Fear Inoculum. "Invincible" is playing as I type.

1. That I stayed the course over my investment accumulation life enabling me to retire at 59.
2. Discovering the genius and wisdom of John C. Bogle.
3. The Bogleheads.org family. An amazing group.

Genuinesarcasm wrote: ↑Fri Nov 25, 2022 4:40 am I am trying to get some ideas on what stock allocation I give my international portion of the portfolio. I am also wondering if Total International is the best choice or whether I should add another fund as well.

What is your allocation of international and what specific fund do you use?

Thanks for the ideas

As a retiree I am 20% of equity in VXUS - Vanguard Total International ETF.

nomorework wrote: ↑Sat Nov 19, 2022 10:43 am Currently have Roth IRA at fidelity

Desired AA 70/30

70% FFNOX
30% FXNAX

Is this boglehead approved?

John C. Bogle would approve
FSKAX Fidelity® Total Market Index Fund - ER .015 56%
FSPSX Fidelity® International Index Fund - ER .035 14%
FXNAX Fidelity® U.S. Bond Index Fund - ER .025 30%

It all depends on your tolerance comfort level during your remaining accumulation years.

I retired December 2021. 401k was invested in 100/0 through 2016 - 5 years before retirement.
In 2017 I went to 90/10, 2018 80/20, 2019 70/30 and 2020 60/40 through 12/31/21 retirement.
Now in my drawdown years I have decided on a 60/40 portfolio.

Only you will be able determine your own life stages tolerance comfort levels. Regarding investing your $200,000 former 401k I would say yes. With 10-15 years remaining there is a lot of money to be made. Total Bond Market? That is up to you. Again tolerance comfort level. If it were me, own the market.

Good luck .

https://www.ssa.gov/oact/TR/2022/index.html See the 13th page of the June 2, 2022 OASDI Trustees Report (PDF). This will tell you the up to date payout reduction payout percentage. Thanks that document says 80% in 2035 declining to 74% in 2096. We each need to make our own choices on how we manage and mitigate risks, but I do not assume nothing will change and do not assume the status quo will persist for my time horizon (50 years). I don't think that is a very likely outcome. However, I don't know what it will change to so I have my retirement planning spreadsheet set up so I can vary inputs and see what the impact of various changes is on my personal situation. Most retirement planning tools allow some amount of adjustment on assumptions...

You can consider what types of things have been done in the past. Past legislation is fact not future prediction: - Raise age of early retirement above 62, full retirement above 67, and delayed retirement above 70. Of course if you make those assumptions you might need to consider what happens if you are not able to work longer due to health issues. The very gradual change from full retirement age of 65 to 67 was passed in 1983. - Raise wage limit for SS taxes. This already is raised every year. It is going up by $13,200 from 2022 to 2023. It has been going up faster than my pay raises for many years. - Reduction of COLA. This happened for federal pensions when the switch was made from CSRS to FERS in 1986. Most retirement software allows ...

Staying the course.

What I suggested to my 21yo daughter is to figure out the total percentage of investment she can afford after monthly expenses.

Example
Salary is $4,166.66/month ($50,000/annual). After monthly expenses she can afford to contribute 15% to retirement. She would max a Roth at $6,000 annual (12%) and contribute the rest to the 401k (3%). Increasing the Roth IRA contributions each year as the law permits and the 401k contribution as
expense needs permit.

The important thing is to make sure she can afford to live without the need/temptation to dip into or
decrease retirement contributions.

Saturday mornings while I am watching College Game Day.