Vanguard 3 funds portfolio

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Mario2222
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Vanguard 3 funds portfolio

Post by Mario2222 »

I invested my Roth IRA account in vanguard target date fund 2045. I don't like the high percentage of the international stocks in a TDF. I want no more than 20%. I'm thinking to change my portfolio to a 3 funds portfolio. VTSAX, VTIAX, VTBLX. Is it easy to rebalance a 3 funds portfolio? Any suggestions? Thanks.
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bertilak
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Re: Vanguard 3 funds portfolio

Post by bertilak »

Mario2222 wrote: Tue Sep 01, 2020 9:30 am I invested my Roth IRA account in vanguard target date fund 2045. I don't like the high percentage of the international stocks in a TDF. I want no more than 20%. I'm thinking to change my portfolio to a 3 funds portfolio. VTSAX, VTIAX, VTBLX. Is it easy to rebalance a 3 funds portfolio? Any suggestions? Thanks.
Simple via the web page. Sell the TD fund and buy what you want with the proceeds. This can even be done in one step using the "sell to buy" option. You will need to decide on the dollar amounts.

This is assuming you have enough to meet the minimum purchase requirements. (If you don't have enough you might as well stick with what you've got until you bring it up to a meaningful balance.) Otherwise, being an IRA, there are no tax consequences or other "gotchas."

If you haven't done this before a Vanguard rep will walk you through it over the phone.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
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Brianmcg321
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Re: Vanguard 3 funds portfolio

Post by Brianmcg321 »

Yes it’s easy.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
bei22000
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Re: Vanguard 3 funds portfolio

Post by bei22000 »

Yep. The 3-fund model works perfect for you in this scenario.
GmanJeff
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Re: Vanguard 3 funds portfolio

Post by GmanJeff »

Not direectly responsive to your question, but relevant food for thought: https://investornews.vanguard/internati ... portfolio/
jdamo
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Re: Vanguard 3 funds portfolio

Post by jdamo »

This link to Vanguard's comments on international was helpful to me. I also was wondering about shifting more to US via the SP500 thinking the US will handle the pandemic better and also that I can trust the accounting better according to SAP. I have not acted on it and was thinking about a shift. I did see the companies in VTIAX and that it has a lot of those major good intl companies in major holdings of that fund. Now seeing these comments and the results of intl in the last 2 decades makes me more comfortable staying with my 17% allocation to international via VTIAX. Thanks.
Doctor Rhythm
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Re: Vanguard 3 funds portfolio

Post by Doctor Rhythm »

jdamo wrote: Tue Sep 01, 2020 1:49 pm I also was wondering about shifting more to US via the SP500 thinking the US will handle the pandemic better and also that I can trust the accounting better according to SAP. I have not acted on it and was thinking about a shift. I did see the companies in VTIAX and that it has a lot of those major good intl companies in major holdings of that fund.
I don’t agree with your assessment of how well the US is handling the pandemic, but that’s beside the point. I hold international stocks for the reasons described in the Vanguard article, not because of any beliefs about the future of the foreign vs domestic markets. Most investors would do better to think less about the market and more about their own financial needs.

I would also claim that one doesn’t need to know anything about the companies (not even their names) in either VTSAX or VTIAX to invest in those funds. Those funds (and therefore I) own all the outstanding companies and all the horrible ones.
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Mario2222
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Re: Vanguard 3 funds portfolio

Post by Mario2222 »

Thanks for all your suggestions. My portfolio will be like this.
VTSAX =70%
VTIAX = 20%
VTBLX = 10%
A target date fund ER= 0.15% what will be the ER with my 3 funds portfolio?
Doctor Rhythm
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Re: Vanguard 3 funds portfolio

Post by Doctor Rhythm »

Mario2222 wrote: Tue Sep 01, 2020 10:43 pm Thanks for all your suggestions. My portfolio will be like this.
VTSAX =70%
VTIAX = 20%
VTBLX = 10%
A target date fund ER= 0.15% what will be the ER with my 3 funds portfolio?
The math is:

0.7(ER of VTSAX) + 0.2(ER of VTIAX) + 0.1(ER of VTBLX) = total ER for your 3 fund portfolio.

Too lazy to look up the numbers right now, but it will be less than 0.15%.
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bertilak
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Re: Vanguard 3 funds portfolio

Post by bertilak »

Mario2222 wrote: Tue Sep 01, 2020 10:43 pm Thanks for all your suggestions. My portfolio will be like this.
VTSAX =70%
VTIAX = 20%
VTBLX = 10%
A target date fund ER= 0.15% what will be the ER with my 3 funds portfolio?
Assuming VTBLX is actually VBTLX:

Code: Select all

Ticker 	Pct	ER	weighted
--------------------------------------------------
VTSAX	70.00%	0.04%	0.02800%
VTIAX	20.00%	0.11%	0.02200%
VBTLX	10.00%	0.05%	0.00500%
--------------------------------------------------
Totals	100.00%		0.05500%
So your answer is .055%

That's a savings of about 63% of expenses.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Topic Author
Mario2222
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Joined: Mon Dec 24, 2018 12:16 am

Re: Vanguard 3 funds portfolio

Post by Mario2222 »

Thank you so much.
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