[Moving from Ultimate Buy and Hold to 2-fund]

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Topic Author
retirewithhelp
Posts: 2
Joined: Sun Jan 12, 2020 1:56 am

[Moving from Ultimate Buy and Hold to 2-fund]

Post by retirewithhelp » Sun Jan 12, 2020 2:06 am

[Split from "Paul Merriman will be our February 2020 "Bogleheads on Investing" guest." -- mod oldcomputerguy]


I am 57 years old and would like to retire around 63 - 65. I currently have my portfolio setup with Paul Merriman's Ultimate buy and hold strategy using the 5 fund method. I have 60% allocated to buy and hold and 40% in bonds. I would like to move to the 2 funds for life strategy. What's the best way to move my holdings to that? Should I be dollar cost averaging by slowly selling out of funds a little at a time or should I simply just move all money to the 85% TDF / 15% SCV?

Triple digit golfer
Posts: 3928
Joined: Mon May 18, 2009 5:57 pm

Re: Moving from UBH to 2-fund

Post by Triple digit golfer » Sun Jan 12, 2020 7:51 am

retirewithhelp wrote:
Sun Jan 12, 2020 2:06 am
[Split from "Paul Merriman will be our February 2020 "Bogleheads on Investing" guest." -- mod oldcomputerguy]


I am 57 years old and would like to retire around 63 - 65. I currently have my portfolio setup with Paul Merriman's Ultimate buy and hold strategy using the 5 fund method. I have 60% allocated to buy and hold and 40% in bonds. I would like to move to the 2 funds for life strategy. What's the best way to move my holdings to that? Should I be dollar cost averaging by slowly selling out of funds a little at a time or should I simply just move all money to the 85% TDF / 15% SCV?
Is it all in tax advantaged accounts? If so, I'd do it all at once.

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Wiggums
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Re: [Moving from Ultimate Buy and Hold to 2-fund]

Post by Wiggums » Sun Jan 12, 2020 9:54 am

retirewithhelp wrote:
Sun Jan 12, 2020 2:06 am
[Split from "Paul Merriman will be our February 2020 "Bogleheads on Investing" guest." -- mod oldcomputerguy]


I am 57 years old and would like to retire around 63 - 65. I currently have my portfolio setup with Paul Merriman's Ultimate buy and hold strategy using the 5 fund method. I have 60% allocated to buy and hold and 40% in bonds. I would like to move to the 2 funds for life strategy. What's the best way to move my holdings to that? Should I be dollar cost averaging by slowly selling out of funds a little at a time or should I simply just move all money to the 85% TDF / 15% SCV?
Taxable account? If pre-tax, I’d exchange it all at once.

I wouldn’t use the target date fund as the replacement because I think a separate bind fund gives you more flexibility.

Paul says, “The Two Funds For Life approach is fairly easy to extend into retirement for someone who has saved just enough because that’s pretty much what the target date fund managers plan for. Sticking with a 100% allocation to the target date fund in retirement is simple and prudent.”

https://paulmerriman.com/two-funds-for- ... etirement/

Topic Author
retirewithhelp
Posts: 2
Joined: Sun Jan 12, 2020 1:56 am

Re: [Moving from Ultimate Buy and Hold to 2-fund]

Post by retirewithhelp » Mon Jan 13, 2020 7:35 pm

All of my portfolio is in tax deferred accounts. 401K and ROTH

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