Retirement advice

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Mario2222
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Joined: Mon Dec 24, 2018 12:16 am

Retirement advice

Post by Mario2222 »

my wife is very desperate to find a good balanced fund with no more than 20% in international stocks. I told her that she needs to pick a target date fund or one of the life strategy funds or the 3 funds portfolio and DIY. She is 40 years old.Any suggestions?
Grt2bOutdoors
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Re: Retirement advice

Post by Grt2bOutdoors »

Mario2222 wrote: Fri Sep 04, 2020 2:22 pm my wife is very desperate to find a good balanced fund with no more than 20% in international stocks. I told her that she needs to pick a target date fund or one of the life strategy funds or the 3 funds portfolio and DIY. She is 40 years old.Any suggestions?
Balanced Index or Wellington, the Lifestrategy or Target date funds will not suffice as they hold 40 percent international.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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AlabamaPaul
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Re: Retirement advice

Post by AlabamaPaul »

Mario2222 wrote: Fri Sep 04, 2020 2:22 pm my wife is very desperate to find a good balanced fund with no more than 20% in international stocks. I told her that she needs to pick a target date fund or one of the life strategy funds or the 3 funds portfolio and DIY. She is 40 years old.Any suggestions?
Half in Wellington and half in Wellesley...
sycamore
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Re: Retirement advice

Post by sycamore »

The major Target Date fund providers seem to have 40%+ of stocks international. Vanguard, Fidelity, BlackRock, T. Rowe Price, etc.

However, there are some providers that reduce the allocation to international (like to 30%) as you move along their glide path.

If no international is acceptable, Vanguard Balanced as Grt2bOutdoors suggested is fine if she likes 60/40 stocks/bonds.

If she must have at least some international but no more than 20%, then DIY 3 funder is a good solution.

If 3 funds is too many, how about 2 funds: a target date fund, plus an additional fund for US stocks to increase its relative share of the total.
Doctor Rhythm
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Re: Retirement advice

Post by Doctor Rhythm »

Assuming you plan to retire alongside her one day, your own retirement accounts (and other assets) need to be considered when determining what funds she should own.
Topic Author
Mario2222
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Joined: Mon Dec 24, 2018 12:16 am

Re: Retirement advice

Post by Mario2222 »

She wants to add VTIAX to VBIAX. 85/15 is it a good idea?
Last edited by Mario2222 on Wed Sep 09, 2020 9:36 am, edited 1 time in total.
dbr
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Re: Retirement advice

Post by dbr »

When portfolios of balanced funds such as target retirement, life strategy, balanced index, Wellesley, etc. start to get complicated one may be much better off with a three fund portfolio using individual funds.
dbr
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Re: Retirement advice

Post by dbr »

Mario2222 wrote: Tue Sep 08, 2020 9:22 am She wants to ad VTIAX to VBIAX. 85/15 is it a good idea?
It would be best to consider all your assets together (as mentioned by another poster) and then determine the asset allocation between stocks and bonds by your need, ability, and willingness to take risk.

In the abstract 85/15 as above is neither a good idea nor a bad one.
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CyclingDuo
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Re: Retirement advice

Post by CyclingDuo »

Mario2222 wrote: Fri Sep 04, 2020 2:22 pmmy wife is very desperate to find a good balanced fund with no more than 20% in international stocks. I told her that she needs to pick a target date fund or one of the life strategy funds or the 3 funds portfolio and DIY. She is 40 years old.Any suggestions?
I would keep it simple to get the exact AA she prefers using the Three Fund Portfolio.

Depending on where her account(s) are held, it comes in various flavors from Vanguard, iShares, Fidelity, Schwab, etc... .

https://www.bogleheads.org/wiki/Three-fund_portfolio

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