Does every one here only have 3 funds in their portfolios?

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Zillions
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Does every one here only have 3 funds in their portfolios?

Post by Zillions »

I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
Last edited by Zillions on Tue Jun 02, 2020 4:43 pm, edited 1 time in total.
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TheTimeLord
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Re: Does every one here only have 3 funds in their portfolios?

Post by TheTimeLord »

Do you consider VOO and VTI the same or different. Same question for VTI and ITOT or VOO and IVV? Are VV, VONE, VTI and VOO different or 1 for the purpose of answering your question? What about I-Bonds and CDs? I am asking because I think there are a lot of things that have distinctions without a meaningful difference.
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Zillions
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Re: Does every one here only have 3 funds in their portfolios?

Post by Zillions »

I prefer VTI because I think of VOO as a subset of VTI. I am however more confused regarding bonds. I think I want a short term / intermediate term / long term / corporate so that might be 4 separate bond funds?

The hardest thing for me was dumping VDC & FSMEX but it's done
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BrandonBogle
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Re: Does every one here only have 3 funds in their portfolios?

Post by BrandonBogle »

It is the norm, but hardly exclusive. Additionally, many holding the “three fund portfolio” hold it in principle and not using those exact three funds.

I’m one of those cases. I can’t use Vanguard’s holdings in my 401k, but I do have a low-cost S&P 500 index fund available there So I use (as outlined in the wiki) a Russell 2000 index fund to approximate Total US Stock Market.

Also, while I have a Total US Bond index fund in my 401k, I hold a municipal bond fund in my taxable in lieu of Total US Bond for better tax treatment.

All this said, I consider myself having a Three Fund Portfolio even though I hold more than 3 total funds.
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FrugalInvestor
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Re: Does every one here only have 3 funds in their portfolios?

Post by FrugalInvestor »

No, not everyone. I have just two funds.
*Full disclosure, I am retired and do have a third (money market) fund that I funnel my short-term spending cash through.
Last edited by FrugalInvestor on Tue Jun 02, 2020 4:44 pm, edited 2 times in total.
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Re: Does every one here only have 3 funds in their portfolios?

Post by whereskyle »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
I use only two: VT (Vanguard Total World ETF, ER .08) and VTSAX

I can assure you that you will not miss the other holdings.

Congrats on dumping the complexity, and welcome to simplicity!
Last edited by whereskyle on Tue Jun 02, 2020 5:20 pm, edited 1 time in total.
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FiveK
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Re: Does every one here only have 3 funds in their portfolios?

Post by FiveK »

TheTimeLord wrote: Tue Jun 02, 2020 4:37 pm I am asking because I think there are a lot of things that have distinctions without a meaningful difference.
+1

Another example would be Tax Loss Harvesting pairs, triplets, etc.
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chickadee
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Re: Does every one here only have 3 funds in their portfolios?

Post by chickadee »

Keeping it simple with the 3 fund portfolio should bring you a great sense of relief. Sure, there are other portfolios that could also work for you. There are all types here on Bogleheads. Many people here have chosen the 3 fund portfolio. Others add tilts or factor slices to their 3 fund. Others are mostly Bogleheads but also market time and are "chartists."

But keeping your portfolio simple and elegant is a wise and clarifying choice. You won't have to worry or second guess about this hot fund or stock you bought underperforming. You've bought the whole haystack.

So if you want a bit of reassurance, here it is. You done good!
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1789
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Re: Does every one here only have 3 funds in their portfolios?

Post by 1789 »

No , only one fund. US TSM/SP500. Treat them the same for simplicity purposes :wink:
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TheTimeLord
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Re: Does every one here only have 3 funds in their portfolios?

Post by TheTimeLord »

FiveK wrote: Tue Jun 02, 2020 4:42 pm
TheTimeLord wrote: Tue Jun 02, 2020 4:37 pm I am asking because I think there are a lot of things that have distinctions without a meaningful difference.
+1

Another example would be Tax Loss Harvesting pairs, triplets, etc.
Or in the case of VOO, VV, VTI and VONE quadruplets.
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cos
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Re: Does every one here only have 3 funds in their portfolios?

Post by cos »

I have only two funds in my portfolio! In general, the simpler things are, the better they are. You made the right choice.
mega317
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Re: Does every one here only have 3 funds in their portfolios?

Post by mega317 »

I think a strict 3 fund portfolio is actually rather less common than one would think from reading here. There are a 100 reasons to deviate from the practice while keeping with the principle. Examples include:
- Accounts at multiple brokerages
- Munis in high tax brackets with total bonds in tax-protected accounts
- holding a treasury fund in an HSA in a state that taxes them
- Work plans that don't have total market funds
- People holding a boat load of cash for whatever reason
- I bonds
- Old positions purchased before adopting the 3 fund portfolio that aren't a big deal to keep and would be expensive to sell
https://www.bogleheads.org/forum/viewtopic.php?t=6212
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Gort
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Re: Does every one here only have 3 funds in their portfolios?

Post by Gort »

One fund. VSMGX
alex_686
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Re: Does every one here only have 3 funds in their portfolios?

Post by alex_686 »

A fair number if Bogleheads do not.

Consider the 3 fund portfolio as the default neutral portfolio.

If you have strong specific market execrations you then tilt or enhance your portfolio from the base 3 fund portfolio.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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FIREchief
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Re: Does every one here only have 3 funds in their portfolios?

Post by FIREchief »

Some of us only have one...… (and a pile of TIPS over in the corner) 8-)
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CardioMD
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Re: Does every one here only have 3 funds in their portfolios?

Post by CardioMD »

One fund, FXAIX.

And time, hopefully, time.
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Re: Does every one here only have 3 funds in their portfolios?

Post by jand87 »

No. I don't have access to Vanguard funds in my 457. So I have a S&P500 Index, a Mid/small cap index, a bond fund, international index, and then I have VTSAX in my Vanguard Roth. The S&P 500 and the mid/small index is my approximation of a total SMI.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Taylor Larimore »

alex_686 wrote: Tue Jun 02, 2020 5:17 pm A fair number if Bogleheads do not.

Consider the 3 fund portfolio as the default neutral portfolio.

If you have strong specific market execrations you then tilt or enhance your portfolio from the base 3 fund portfolio.
alex_686:

It is fair to point out that in recent years tilting has not "enhanced" The Three-Fund Portfolio. In most cases it has "dehanced" The Three-Fund Portfolio.

Best wishes.
Taylor
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Re: Does every one here only have 3 funds in their portfolios?

Post by 22twain »

alex_686 wrote: Tue Jun 02, 2020 5:17 pm If you have strong specific market execrations you then tilt or enhance your portfolio from the base 3 fund portfolio.
I think one should keep emotions out of their investing decisions, as much as possible.

https://www.merriam-webster.com/dictionary/execration

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Re: Does every one here only have 3 funds in their portfolios?

Post by Nowizard »

We don't have three; we have five and two individual stocks that represent a small percentage of the total, so we follow a lot of the more strict, Boglehead philosophy but not all. We have Total Stock Index, Total Bond Index, Wellington, Dodge and Cox and Short Term Bond. We also own Intuitive Surgical and Amazon stock representing about 3% of our total portfolio. We have Dodge and Cox, frankly, because my spouse wants it, and Wellington because we both feel diversification can also involve some actively managed funds. Works for us, and that is all that counts. We are in retirement and have approximately a 37/63 portfolio.

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Re: Does every one here only have 3 funds in their portfolios?

Post by AerialWombat »

Five “funds”, if cash is a fund. :beer

Wellesley, cash, VWITX, VWAHX, Fidelity RE Index, in order of portfolio value.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Robert20 »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
My Roth, traditional and taxable accounts have 3 funds only. (some individual stocks are there to close soon). Some extra money in m1finance to play with some stocks..
02nz
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Re: Does every one here only have 3 funds in their portfolios?

Post by 02nz »

Gort wrote: Tue Jun 02, 2020 4:59 pmOne fund. VSMGX
That's 4 funds!
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Re: Does every one here only have 3 funds in their portfolios?

Post by mervinj7 »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
I have a three-fund portfolio. However, that doesn't mean I would immediately advise you to sell 90% of your portfolio to convert to a three-fund portfolio (as much as I believe in it). What are the tax considerations? If the goal is to leave a sizable inheritance for your kid, they will receive a stepped-basis at that time. If you sell assets with sizeable gains now, you will be paying taxes at your current marginal rates. That's not necessarily a bad thing but don't ignore it. In general, I would never make quick financial decisions based on any transient emotional states.

I suggest posting your portfolio questions in the suggested format and get advice on how to move forward. The only thing I would do right now is to turn OFF all dividend reinvestments or any automatic investing. That way, you are not adding to current assets.
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Re: Does every one here only have 3 funds in their portfolios?

Post by masteraleph »

11 or 12 depending on how you count, due to a mixture of various account types and funds in the account:

Domestic stock (ideally would just be total stock market)- these are all in my 401k, where total stock isn't available:
*Vanguard S&P 500
*Vanguard Midcap
*Vanguard Smallcap

Real Estate (in my old 403b)-
*TIAA Real Estate

Fixed Income (ideally would just be Vanguard Total Bond, or maybe that plus TIAA Traditional)-
*TIAA Traditional (this is the remainder of the 403b beyond real estate, above)
*Voya Midcap (this is the remainder of the 401k, above)
*Vanguard Total Bond (my Roth)

International Stock-
*Vanguard Total International (remainder of my Roth)
*Vanguard Total International (wife's Roth)
*FTIHX (Fidelity Total International Index Fund)- main HSA
*Vanguard Developed Markets- Payflex HSA through employer
*Vanguard Emerging Markets- Payflex HSA through employer

So yeah- not divided up this way due to desire, just because of the way that the accounts are divided and how much is in each. Ideally I'd still be able to contribute to the 403b, and could then drop the Voya midcap, and ideally the Payflex HSA would have a better option in it and reduce a fund there, too.
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Re: Does every one here only have 3 funds in their portfolios?

Post by L82GAME »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
Yep, just three.
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Re: Does every one here only have 3 funds in their portfolios?

Post by 2tall4economy »

I just had 1 for about 15 years.

Now I have two.

I’m not counting cash, but if so then I have 3.
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Re: Does every one here only have 3 funds in their portfolios?

Post by ruralavalon »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
Three funds is fairly typical but not uniform. The general idea is very broad diversification and low expenses in a simple portfolio.

We have four funds:
1) Vanguard Total Stock Market Index Fund (VTSAX);
2) Vanguard Small-cap Value Index Fund (VSIAX);
3) Vanguard Total International Stock Index Fund (VTIAX); and
4) Vanguard Intermediate-term Bond Index Fund (VBILX).

You have not listed what your already had, so it's not possible to comment on your portfolio.

Zillions wrote: Tue Jun 02, 2020 4:41 pm I prefer VTI because I think of VOO as a subset of VTI. I am however more confused regarding bonds. I think I want a short term / intermediate term / long term / corporate so that might be 4 separate bond funds?

The hardest thing for me was dumping VDC & FSMEX but it's done
You are right, the stocks of the companies in Vanguard S&P 500 ETF (VOO) are included Vanguard Total Stock Market ETF (VTI).

Vanguard Total Bond Market ETF (BND) includes short-term, intermediate-term and long-term bonds, both corporate bonds and government bonds.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Jerry55 »

Everyone is different. Do what feels right for you.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Vanguard Fan 1367 »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
I am like you and found it difficult to consolidate my portfolio to 3 funds. With the recent drop I did sell some things that Bogleheads convinced me were good to sell but I still have a half dozen funds.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Texanbybirth »

One fund, vanguard target retirement 2050. I’ll let you know how that works out in 30 years! :beer
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Re: Does every one here only have 3 funds in their portfolios?

Post by rkhusky »

alex_686 wrote: Tue Jun 02, 2020 5:17 pm If you have strong specific market execrations you then tilt or enhance your portfolio from the base 3 fund portfolio.
If you have strong market execrations, you should only hold bonds or cash.
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Re: Does every one here only have 3 funds in their portfolios?

Post by JHU ALmuni »

Not 3, maybe 30+ between funds, individual stocks, and crypto currencies. No regrets :beer
REITired
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Re: Does every one here only have 3 funds in their portfolios?

Post by REITired »

We (basically) use a four-fund portfolio for all 401k, IRA, and taxable accounts (based on tax efficiency). Our HSA is a bit more targeted.

Core four include Fidelity and Vanguard versions of:

- SP500
- Extended US
- Total International
- Total US bond

HSA includes:

- VGT
- VNQ
Last edited by REITired on Tue Jun 02, 2020 8:01 pm, edited 1 time in total.
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Re: Does every one here only have 3 funds in their portfolios?

Post by HawkeyePierce »

I have 12:

Core Portfolio: 8 (NTSX, ACWV, VIOV, ISCF, VWO, VWOB, EDV, GLDM)
Excellent Adventure: 2 (UPRO, EDV)
B2B Cloud Tilt: 1 "fund" but it's an M1 pie with 50 stocks
Taxable: VFIAX
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Re: Does every one here only have 3 funds in their portfolios?

Post by sailaway »

I have lots of leftover whatsits from early investing days.

The real surprise is that DH, who helped me simplify my retirement portfolio, went a little crazy with his HSA. We probably have more funds in there than all the retirement accounts combined. He's not the one trying to figure out gains for CA taxes each year :(
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Re: Does every one here only have 3 funds in their portfolios?

Post by reln »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
I have 1, 3, and 4 in different accounts that all equal approximately the same AA.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Ferdinand2014 »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
I have 1 fund - FXAIX (Fidelity 500 index) and cash. I am very happy and sleep well at night.

The 3 fund is an excellent choice and certainly you do not need anything more than 3.
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Re: Does every one here only have 3 funds in their portfolios?

Post by Sandtrap »

Everyone on the forum does not have only a 3 fund portfolio.
Some have 2 funds, equity and bond, etc.
Some have 1 fund.

j :happy
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Gort
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Re: Does every one here only have 3 funds in their portfolios?

Post by Gort »

02nz wrote: Tue Jun 02, 2020 6:13 pm
Gort wrote: Tue Jun 02, 2020 4:59 pmOne fund. VSMGX
That's 4 funds!
:sharebeer
SDLinguist
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Re: Does every one here only have 3 funds in their portfolios?

Post by SDLinguist »

mega317 wrote: Tue Jun 02, 2020 4:56 pm I think a strict 3 fund portfolio is actually rather less common than one would think from reading here. There are a 100 reasons to deviate from the practice while keeping with the principle. Examples include:
- Accounts at multiple brokerages
- Munis in high tax brackets with total bonds in tax-protected accounts
- holding a treasury fund in an HSA in a state that taxes them
- Work plans that don't have total market funds
- People holding a boat load of cash for whatever reason
- I bonds
- Old positions purchased before adopting the 3 fund portfolio that aren't a big deal to keep and would be expensive to sell
This really nails it on the head. We only have been saving for the last 5 years since we have finished our schooling.

We have a 3 fund in that we cover us, x-us and bonds, but with funds being spread over 4 different financial institutions, my 40k, her 401k, HSAs for each, our taxable account, etc. We hold 7 different funds to fit into those three fund categories, whatever is available in different places.
index245
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Re: Does every one here only have 3 funds in their portfolios?

Post by index245 »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
It is a good default suggestion, but you don't HAVE to use a literal three fund approach. Especially if selling those mutual funds to move to a three fund approach triggers capital gains tax. If they are held in tax deferred accounts, then go right ahead.

Most importantly, take the right amount of risk (stocks vs bonds/cash), keep expense ratios low and diversify. Owning a sector fund (or gasp! Small cap value) is not the end of the world.
nanameg
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Re: Does every one here only have 3 funds in their portfolios?

Post by nanameg »

2tall4economy wrote: Tue Jun 02, 2020 6:37 pm I just had 1 for about 15 years.

Now I have two.

I’m not counting cash, but if so then I have 3.
What two?
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Re: Does every one here only have 3 funds in their portfolios?

Post by nanameg »

FrugalInvestor wrote: Tue Jun 02, 2020 4:41 pm No, not everyone. I have just two funds.
*Full disclosure, I am retired and do have a third (money market) fund that I funnel my short-term spending cash through.
Can I ask which 2?
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Re: Does every one here only have 3 funds in their portfolios?

Post by Halicar »

I have four. (or maybe five...or six, depending on how you count them)

Roth IRA:
VTSAX (Total Stock)
VBTLX (Total Bond)
VTIAX (Total International Stock)
VTABX (Total International Bond)

401(k):
VASGX (LifeStrategy Growth)--comprised of the four funds above

Taxable:
VFIAX (S&P 500 Index)--basically the same as VTSAX
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Re: Does every one here only have 3 funds in their portfolios?

Post by remomnyc »

I aspire to 3-fund, but I have more because my original portfolio manager had me in 10+. I used the dip in March to tax loss harvest and consolidate some. I still have small cap, REIT, and emerging market funds that I eventually want to merge into 3-fund but capital gains have stopped me from doing so. These will be likely used to fund charitable through my DAF or left for heirs so they get a stepped up basis.
Dottie57
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Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Does every one here only have 3 funds in their portfolios?

Post by Dottie57 »

My equities are same as in 3 fund portfolio. I have a harder time with bonds. 401k has tips fund. IRA has fidelity toal bond index fund.
go2run
Posts: 5
Joined: Wed Mar 08, 2017 1:34 pm

Re: Does every one here only have 3 funds in their portfolios?

Post by go2run »

You did the right thing! Simplicity of managing funds over multiple accounts is something that you will appreciate later. If I go back 6 years ago and look at my portfolio, I had 18 different funds. I have learned and am happy with the simple and efficient approach.

General approach is a 4-fund approach:

1. VTSAX - Total US Stock Market Index
2. VTIAX - Total Intl Stock Market Index
3. VTABX - Intl Bond Index
4. VBTLX - Total Bond Index

I've worked to consolidate as many accounts in Vanguard (2 Roth IRA's, 2 Rollover IRA's, Brokerage Acct) but still have 2 outside retirement accounts (401k and 457). Reality is there are more than the 4 funds but I choose to allocate appropriately with low fee (index) funds where I can.

I recently used the downturn in the economy as an opportunity to dump other funds in my taxable account and align with my overall portfolio strategy.

I have chosen to take a small percentage of my overall portfolio and dabble in stocks. I've kept this activity in my Roth IRA and work to maintain tax efficiency across accounts.
GibsonL6s
Posts: 371
Joined: Tue Aug 29, 2017 12:17 pm

Re: Does every one here only have 3 funds in their portfolios?

Post by GibsonL6s »

Zillions wrote: Tue Jun 02, 2020 4:32 pm I just placed sell orders for all the mutual funds & ETFs that are not total stock / bond / international markets index funds.

I understand that this is Bogleheads and that this is also deeply personal but is the 3 fund portfolio the norm here? I don't intend to offend anyone. We've been with this portfolio for a while now and it was very very difficult to dump 90% of our portfolio to exchange into the 3 funds. I guess I am just looking for some reassurance. This is the portfolio that will one day feed / clothe / shelter my disabled kid long after I am gone, so I am really emotional right now.
Curious what these funds were. Were they active stock funds, commodities?

Not everyone is exclusively 3 funds. Some have other things such as individual stocks, REITS or pursue other strategies. Since discovering this site, I have been working to simplify, but I doubt I will ever be strictly 3 funds. I have an IRA that has one target date fund, and IRA with a target date fund and an active balanced fund. I also have a brokerage that is 70% VTI with some other odds and ends.

The point is you can embrace low cost index funds yet don't have to be dogmatic about it, but if I had it to do over I probably would have been one or two funds for simplicity.
SpaceX
Posts: 14
Joined: Sat May 30, 2020 11:54 pm
Location: FL

Re: Does every one here only have 3 funds in their portfolios?

Post by SpaceX »

go2run wrote: Tue Jun 02, 2020 10:53 pm You did the right thing! Simplicity of managing funds over multiple accounts is something that you will appreciate later. If I go back 6 years ago and look at my portfolio, I had 18 different funds. I have learned and am happy with the simple and efficient approach.

General approach is a 4-fund approach:

1. VTSAX - Total US Stock Market Index
2. VTIAX - Total Intl Stock Market Index
3. VTABX - Intl Bond Index
4. VBTLX - Total Bond Index

I've worked to consolidate as many accounts in Vanguard (2 Roth IRA's, 2 Rollover IRA's, Brokerage Acct) but still have 2 outside retirement accounts (401k and 457). Reality is there are more than the 4 funds but I choose to allocate appropriately with low fee (index) funds where I can.

I recently used the downturn in the economy as an opportunity to dump other funds in my taxable account and align with my overall portfolio strategy.

I have chosen to take a small percentage of my overall portfolio and dabble in stocks. I've kept this activity in my Roth IRA and work to maintain tax efficiency across accounts.
I've invested primarily in Vanguard Funds as well. The 4 listed funds above I think form the core of all the Vanguard Target Date Retirement Funds, with varying allocations based upon date of retirement. Any thoughts regarding Vanguards Tax Managed Funds (Capital Appreciation and Small Cap) in a non-retirement account if you're in the highest tax bracket with the addition of the bond index funds in the US and international?
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