Jim Collin's advice for a retirement account

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Mario2222
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Jim Collin's advice for a retirement account

Post by Mario2222 »

He recommends VTSAX & VBTLX vanguard total stock market & total bonds. Any thoughts?
retired@50
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Re: Jim Collin's advice for a retirement account

Post by retired@50 »

Mario2222 wrote: Thu Aug 27, 2020 11:20 pm He recommends VTSAX & VBTLX vanguard total stock market & total bonds. Any thoughts?
The phrase, "Two out of three ain't bad", comes to mind.

See link: https://www.bogleheads.org/wiki/Two-fund_portfolio

Include international stocks here: https://www.bogleheads.org/wiki/Three-fund_portfolio

Regards,
This is one person's opinion. Nothing more.
bigfry
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Re: Jim Collin's advice for a retirement account

Post by bigfry »

Can't go wrong with a two-fund protfolio.
100% Total Stock Index | 6 Months Cash | No Debt
ByThePond
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Re: Jim Collin's advice for a retirement account

Post by ByThePond »

That's exactly my portfolio.
It's not just that "two out of three ain't bad", but I figure that the international components of domestic stocks more than suffice for international balance, without a lot of the inherent added risks.
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Brianmcg321
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Re: Jim Collin's advice for a retirement account

Post by Brianmcg321 »

You couldn’t do much better.

I’m a big fan of JL.

It’s exactly what Bogle and Buffett would recommend.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
tomd37
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Re: Jim Collin's advice for a retirement account

Post by tomd37 »

At age 83, I have the basic two-fund portfolio with a 40/60 asset allocation to total stock/bond market index funds. Using the often discussed not more than twenty percent allocation to international stock, I don't see were having eight percent of my portfolio in international stock is really worth considering. Anyway I want to keep my allocation as simple as possible for my spouse if I happen to pass first. Just my thoughts.
Tom D.
nix4me
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Re: Jim Collin's advice for a retirement account

Post by nix4me »

I follow JL Collins as well for the most part. Accumulators use 100/0. Then throw in some bonds at retirement to smoooth the ride.
dbr
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Re: Jim Collin's advice for a retirement account

Post by dbr »

Mario2222 wrote: Thu Aug 27, 2020 11:20 pm He recommends VTSAX & VBTLX vanguard total stock market & total bonds. Any thoughts?
Sure. If you want an understanding of practical investing I recommend start here: https://www.bogleheads.org/wiki/Getting_started

Of direct interest would be the already posted links, the three fund portfolio in particular.

These are not "thoughts" but a strong recommendation for what is known to be a solid approach to investing for the individual investor.
iamblessed
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Re: Jim Collin's advice for a retirement account

Post by iamblessed »

I think Jim Collin's is 70/30 in retirement right now. Last I heard. I have some international. I notice both Vanguard and Fidelity are both putting more international in their mixed funds. So I am to. Even with that I am still a big fan of Collin's.
Last edited by iamblessed on Fri Aug 28, 2020 11:52 am, edited 1 time in total.
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ruralavalon
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Re: Jim Collin's advice for a retirement account

Post by ruralavalon »

Mario2222 wrote: Thu Aug 27, 2020 11:20 pm He recommends VTSAX & VBTLX vanguard total stock market & total bonds. Any thoughts?
Not a bad idea at all, although I also use some international stocks.

Forum discussion "Jack Bogle -- two fund portfolio" .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
BernardShakey
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Re: Jim Collin's advice for a retirement account

Post by BernardShakey »

I like him too but he's just too aggressive for me. I'd like to have the stomach for his AA recommendations, but as I'm in the run-up to retirement I just can't bring myself stay at his level of equities. Call me chicken :)
An important key to investing is having a well-calibrated sense of your future regret.
dbr
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Re: Jim Collin's advice for a retirement account

Post by dbr »

BernardShakey wrote: Fri Aug 28, 2020 12:02 pm I like him too but he's just too aggressive for me. I'd like to have the stomach for his AA recommendations, but as I'm in the run-up to retirement I just can't bring myself stay at his level of equities. Call me chicken :)
Recommending the funds that might make up a portfolio is fine. Recommending an asset allocation without knowing the situation and the objectives of the investor is just nonsense. Asset allocation is the personal responsibility of the investor and no one can do it for them.
Last edited by dbr on Fri Aug 28, 2020 12:48 pm, edited 1 time in total.
tibbitts
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Re: Jim Collin's advice for a retirement account

Post by tibbitts »

ByThePond wrote: Fri Aug 28, 2020 6:36 am That's exactly my portfolio.
It's not just that "two out of three ain't bad", but I figure that the international components of domestic stocks more than suffice for international balance, without a lot of the inherent added risks.
I don't believe anyone can make a credible argument that domestic business exposure to international markets is equivalent to exposure to international equity markets. You're implying a free lunch: international exposure without international risk.
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CyclingDuo
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Re: Jim Collin's advice for a retirement account

Post by CyclingDuo »

Mario2222 wrote: Thu Aug 27, 2020 11:20 pm He recommends VTSAX & VBTLX vanguard total stock market & total bonds. Any thoughts?
Sure, there are always tons of thoughts when it comes to AA beyond just JL Collins thoughts.

For instance, here's what T. Rowe Price recommends for allocation ranges based on ages:

Image
https://www.investors.com/etfs-and-fund ... yptr=yahoo

Or the Bond Tent from Kitces shows a different allocation to stocks...

ImageGraphics_3-2

Image
https://www.kitces.com/blog/managing-po ... -red-zone/

One could go on citing a whole list of sources and their allocation models to add to the mix.

In addition to the risk tolerance, longevity in the family history, etc... - one would also factor in other streams of income such as a pension, rental income, Social Security, royalties, and even part-time or consulting work. Mix in legacy goals for charity and or as well as family heirs - and the AA could have quite a different range from one household to another.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel
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