Best buy and hold vanguard fund forever...

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bdb
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Best buy and hold vanguard fund forever...

Post by bdb » Wed May 23, 2018 8:01 am

Good morning everyone,
I can no longer contribute to my roth ira with vanguard bc my wife and my income is too high, I have been maxing out my roth since 18yrs old and now im 40. I already max out my job 401k. My question is what vanguard fund would be the best set it and forget it? Any suggestions greatly appreciate it.

Jack FFR1846
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Re: Best buy and hold vanguard fund forever...

Post by Jack FFR1846 » Wed May 23, 2018 8:03 am

Bogle: Smart Beta is stupid

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matjen
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Re: Best buy and hold vanguard fund forever...

Post by matjen » Wed May 23, 2018 8:10 am

So assuming this fund is outside of any 401(k), IRA or other tax advantaged account then without a doubt (IMO) the best single fund would be Vanguard Total World Stock ETF (VT). Adjust the bond side of the portfolio in your tax-advantaged accounts to ensure your asset allocation is where you want it to be.

From Morningstar: Vanguard Total World Stock ETF VT is a solid one-stop choice for exposure to global stocks. It accurately represents the global investable universe and is well diversified across developed and emerging markets. It also has one of the lowest expense ratios in the world large stock Morningstar Category and earns a Morningstar Analyst Rating of Silver.
A man is rich in proportion to the number of things he can afford to let alone.

dbr
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Re: Best buy and hold vanguard fund forever...

Post by dbr » Wed May 23, 2018 8:31 am

The two above suggestions are credible if/when they apply. The best fund, of course, is what best suits your objectives, and there may not be one single fund that does that. It is also unlikely that anyone should "set it and forget it" as the world marches on and one's life marches on and what suits best can evolve.

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vineviz
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Re: Best buy and hold vanguard fund forever...

Post by vineviz » Wed May 23, 2018 8:43 am

matjen wrote:
Wed May 23, 2018 8:10 am
So assuming this fund is outside of any 401(k), IRA or other tax advantaged account then without a doubt (IMO) the best single fund would be Vanguard Total World Stock ETF (VT). Adjust the bond side of the portfolio in your tax-advantaged accounts to ensure your asset allocation is where you want it to be.
+1
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lostdog
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Re: Best buy and hold vanguard fund forever...

Post by lostdog » Wed May 23, 2018 8:47 am

VT. Vanguard Total World equity index fund. For bonds Vanguard will release Total World bond index in the third quarter of this year. Very simple two fund portfolio to set it and forget it.

Jon H
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Re: Best buy and hold vanguard fund forever...

Post by Jon H » Wed May 23, 2018 9:00 am

You can still do a backdoor Roth IRA
Consider gain and loss, but never be greedy and everything will be alright (fortune cookie)

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David Jay
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Re: Best buy and hold vanguard fund forever...

Post by David Jay » Wed May 23, 2018 10:38 am

Welcome to the forum!
Jon H wrote:
Wed May 23, 2018 9:00 am
You can still do a backdoor Roth IRA
^^^ This. Wiki information here: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA

[edit] And you can each do one - $11,000 a year of additional tax-advantaged space
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Quickfoot
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Re: Best buy and hold vanguard fund forever...

Post by Quickfoot » Wed May 23, 2018 10:41 am

In taxable if you want to hold one fund the tax managed balanced fund would be the best, it is roughly 50% muni bonds and 50% equity, it is a reasonable asset allocation to hold for life and minimizes taxes. If you desire to hold fixed income in tax advantaged space the total world ETF is a great choice.

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JoMoney
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Re: Best buy and hold vanguard fund forever...

Post by JoMoney » Wed May 23, 2018 10:48 am

Warren Buffett in 2013 BRK shareholder letter wrote: http://www.berkshirehathaway.com/letters/2013ltr.pdf
My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s benefit ... My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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luap
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Re: Best buy and hold vanguard fund forever...

Post by luap » Wed May 23, 2018 11:22 am

Jon H wrote:
Wed May 23, 2018 9:00 am
You can still do a backdoor Roth IRA
+1

https://www.bogleheads.org/wiki/Backdoor_Roth_IRA

MotoTrojan
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Re: Best buy and hold vanguard fund forever...

Post by MotoTrojan » Wed May 23, 2018 11:29 am

When taxable assets show up, it is better to self-manage in a tax-efficient way. If you are all in Roth/401k/IRA, I would suggest using the same/similar Target Retirement (or Lifestrategy, which doesn't glide) fund. This will be truly hands-free as it'll manage your rebalancing daily. You can change the fund every few years if you want to custom tune the AA differently than the prescribed glide-path, but other than that just keep piling money into it.

inbox788
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Re: Best buy and hold vanguard fund forever...

Post by inbox788 » Wed May 23, 2018 11:46 am

Portfolio 7! [VSMGX Vanguard LifeStrategy Moderate Growth]
https://www.whitecoatinvestor.com/150-p ... han-yours/

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nisiprius
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Re: Best buy and hold vanguard fund forever...

Post by nisiprius » Wed May 23, 2018 1:08 pm

??? "Forever" implies into and through retirement. Without getting into the debate about glide paths, I personally find that my own risk tolerance has indeed matched up well with the idea of declining risk tolerance with age, therefore a declining stock allocation with age. Now, of course, you only need to adjust for risk tolerance every decade or so, but nevertheless if you literally mean one single fund and "hands off forever," then I would go with the obvious choice: a Vanguard Target Retirement fund with a suitable target year, perhaps 2018 - 40 + 65 and round down to be conservative: Target Retirement 2040.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

bdb
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Re: Best buy and hold vanguard fund forever...

Post by bdb » Wed May 23, 2018 1:40 pm

Anybody a fan of vanguards balanced index fund?

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GerryL
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Re: Best buy and hold vanguard fund forever...

Post by GerryL » Wed May 23, 2018 3:21 pm

bdb wrote:
Wed May 23, 2018 1:40 pm
Anybody a fan of vanguards balanced index fund?
I started with the VG Asset Allocation fund and was switching to Balanced Index when they did away with the former and replaced it the latter, so effectively, Balanced Index was my first VG fund. I know that bonds don't belong in taxable, but I didn't know that when I started. With 20+ years of regular investing in the fund (and no withdrawals), it would be too expensive to try to switch out, so I stick with it. And the 60/40 AA matches my overall AA (although not the international stock and bond aspect) and keeps life simple. Am currently using dividends for living expenses, but when SS kicks in (soon) I will probably go back to reinvesting earnings.

So, yes, I am a fan, but I am not inclined to be a breathless fan of any investment.

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Toons
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Re: Best buy and hold vanguard fund forever...

Post by Toons » Wed May 23, 2018 3:23 pm

Vanguard Balanced Index Fund -Admiral.


:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

123
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Re: Best buy and hold vanguard fund forever...

Post by 123 » Wed May 23, 2018 3:43 pm

My vote would be for Vanguard Total Stock Market, either mutual fund or etf (VTI). You may add other funds to it, like with a 3 fund portfolio, if you like but its objective, and holdings, are not likely to change. Fund companies, including Vanguard, might mess around with the mixture of balanced funds or fund-of-funds but I think Vanguard Total Stock Market is pretty safe from that. Over time other funds you're comfortable with may change including those that involve international stocks, bonds, REITS, etc but a broad market US equity investment is hard to argue against.
The closest helping hand is at the end of your own arm.

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Artsdoctor
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Re: Best buy and hold vanguard fund forever...

Post by Artsdoctor » Wed May 23, 2018 4:03 pm

There's really no such thing as set it and forget it "forever." At some point, you're going to change.

However, I believe you're describing your Roth and that's it. You don't mention anything about a taxable account and it's not clear if you're asking for advice on your tax-deferred account(s).

I think LifeStrategy funds are terrific. You can keep one of the funds with a high equity allocation for decades and whenever you want to scale back equities, you can deal it in other accounts and/or simply ratchet down to another less aggressive LifeStrategy fund.

WhiteMaxima
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Re: Best buy and hold vanguard fund forever...

Post by WhiteMaxima » Wed May 23, 2018 4:06 pm

Vanguard Balanced Fund Admiral Class (30/30/40, US/Intl/Bond). Hold it forever.

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FrugalInvestor
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Re: Best buy and hold vanguard fund forever...

Post by FrugalInvestor » Wed May 23, 2018 4:16 pm

Post deleted. Missed OP was referring to a Roth IRA.
Last edited by FrugalInvestor on Wed May 23, 2018 5:21 pm, edited 1 time in total.
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Ricola
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Re: Best buy and hold vanguard fund forever...

Post by Ricola » Wed May 23, 2018 4:21 pm

Toons wrote:
Wed May 23, 2018 3:23 pm
Vanguard Balanced Index Fund -Admiral.
:happy
+1

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GoldStar
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Re: Best buy and hold vanguard fund forever...

Post by GoldStar » Wed May 23, 2018 4:28 pm

Ricola wrote:
Wed May 23, 2018 4:21 pm
Toons wrote:
Wed May 23, 2018 3:23 pm
Vanguard Balanced Index Fund -Admiral.
:happy
+1
Out of curiosity - why not the LifeStrategy Fund that provides the right stock/bond mix? That will provide international exposure as well.

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tennisplyr
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Re: Best buy and hold vanguard fund forever...

Post by tennisplyr » Wed May 23, 2018 4:55 pm

Toons wrote:
Wed May 23, 2018 3:23 pm
Vanguard Balanced Index Fund -Admiral.


:happy
+1
Those who move forward with a happy spirit will find that things always work out.

Malinois000
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Re: Best buy and hold vanguard fund forever...

Post by Malinois000 » Wed May 23, 2018 5:21 pm

Have you considered a back door Roth? That's what may wife and I have been using the past years...

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Ricola
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Re: Best buy and hold vanguard fund forever...

Post by Ricola » Wed May 23, 2018 5:38 pm

+1
[/quote]
Out of curiosity - why not the LifeStrategy Fund that provides the right stock/bond mix? That will provide international exposure as well.
[/quote]

Total Stock and Total Bond have enough diversification for me, so I like to keep it simple and reduce ER.

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Fudgie
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Re: Best buy and hold vanguard fund forever...

Post by Fudgie » Wed May 23, 2018 7:01 pm

:oops:
Last edited by Fudgie on Fri Jun 08, 2018 6:08 pm, edited 1 time in total.

gluskap
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Re: Best buy and hold vanguard fund forever...

Post by gluskap » Wed May 23, 2018 7:26 pm

VTSAX. You said you're buying and holding forever so if you're not selling then why not be aggressive? LOL.

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joe8d
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Re: Best buy and hold vanguard fund forever...

Post by joe8d » Wed May 23, 2018 7:39 pm

Total Stock Market Index.
All the Best, | Joe

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