Three Fund Portfolio Advice

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Norwegianwood
Posts: 3
Joined: Fri Feb 14, 2020 12:10 pm

Three Fund Portfolio Advice

Post by Norwegianwood » Thu Mar 26, 2020 5:14 pm

My wife and I are retired teachers both age 62 with modest school pensions. We are not taking SS yet. I've invested with Vanguard for a number of years and joined the Bogleheads site as a way to hopefully become a smarter investor. Recently, I have been reading about the Three Fund portfolio. At this stage of my life, my AA is in the 60/40 range and the current accelerated drop since mid February has me thinking - I might want to be around 50/50 Stocks and Bonds.

I have money invested in both the Wellington and Wellsely funds. In a sense that was my way of trying to mitigate some risk since Wellington is a 60/40 % fund and Wellsely tilts more towards bonds. Should I just look to adjust my portfolio to 50% Total Stock (VTSMX) and 50% Total Bond (VBTLX)? I have never been one for International investing - I know from my reading that John Bogle was not either. Is just a Two Fund portfolio OK or is a third fund component suggested?

Thanks in advance for your comments and feedback.

retired@50
Posts: 1715
Joined: Tue Oct 01, 2019 2:36 pm

Re: Three Fund Portfolio Advice

Post by retired@50 » Thu Mar 26, 2020 5:19 pm

Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

retiredjg
Posts: 39953
Joined: Thu Jan 10, 2008 12:56 pm

Re: Three Fund Portfolio Advice

Post by retiredjg » Thu Mar 26, 2020 5:22 pm

Welcome to the forum.

The suggested amount of international is somewhere between 0% of your stocks and 50% of your stocks.:happy Not meaning to be coy, but there are people who believe strongly in just about every point along that line.

If you don't want international stocks, don't have any. Or have a minimal amount such as 20% of your stocks.

Wellington and Wellesley both contain international. It is not in the higher ranges but I don't remember where it is - maybe 20% or 25%? Were you aware you already had some international stock?

Topic Author
Norwegianwood
Posts: 3
Joined: Fri Feb 14, 2020 12:10 pm

Re: Three Fund Portfolio Advice

Post by Norwegianwood » Thu Mar 26, 2020 6:21 pm

I wasn’t aware of the international exposure. Thanks

retiredjg
Posts: 39953
Joined: Thu Jan 10, 2008 12:56 pm

Re: Three Fund Portfolio Advice

Post by retiredjg » Thu Mar 26, 2020 6:33 pm

Yep, there is some in there. :)

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