Boglehead simple portfolio for an aussie

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Topic Author
settlement12
Posts: 81
Joined: Sun Mar 08, 2020 8:04 pm

Boglehead simple portfolio for an aussie

Post by settlement12 »

Hi all,

I have my own portfolio in Ireland which I'm pretty happy with. But I'm looking to design a simple aussie portfolio for my partner.

I've settled on (after 6 month's expenses)
1. VDHG = 70%
2. Gold = 15%
3. Government bonds = 15%.

I'm happy with VDHG and how to buy it. However, since gold and bonds don't form part of my own portfolio, can someone let me know what's the simplest way to get exposure to these 2? Which bonds and which gold ETFs?

EDIT: a further Q, since VDHG has bond exposure, should I just get rid of bonds and go with VDHG 85% and gold 15%?
Hockey Monkey
Posts: 93
Joined: Thu Aug 13, 2020 10:23 pm

Re: Boglehead simple portfolio for an aussie

Post by Hockey Monkey »

Hi

The Vanguard diversified ETFs are a great simple all in one solution once you establish your partners risk tolerance.

VDHG 90/10
VDGR 70/30
VDBA 50/50
VDCO 30/70

Some good places to start
https://www.bogleheads.org/wiki/Risk_tolerance
https://passiveinvestingaustralia.com/a ... -tolerance

Gold on the other hand is a speculative asset without an expected return. Was there anything in particular that led you including it in the portfolio?

This page includes a great write up
https://passiveinvestingaustralia.com/w ... -and-bonds
Topic Author
settlement12
Posts: 81
Joined: Sun Mar 08, 2020 8:04 pm

Re: Boglehead simple portfolio for an aussie

Post by settlement12 »

Thanks Hockey Monkey.

I don't actually have gold in my own portfolio. But equities are incredibly and illogically high right now so I think she should have some.

I know that's just speculation but it's what I'm comfortable with.
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Beensabu
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Re: Boglehead simple portfolio for an aussie

Post by Beensabu »

settlement12 wrote: Mon Jul 26, 2021 8:00 pm I know that's just speculation but it's what I'm comfortable with.
You're not comfortable with it, or else you would have it in your own portfolio.

What about her? Is she comfortable with it?
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
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andrew99999
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Re: Boglehead simple portfolio for an aussie

Post by andrew99999 »

settlement12 wrote: Mon Jul 26, 2021 8:00 pm I don't actually have gold in my own portfolio. But equities are incredibly and illogically high right now so I think she should have some.
:confused

I don't know how that makes any more sense than saying "I'm hungry, so I will go watch a movie".
Topic Author
settlement12
Posts: 81
Joined: Sun Mar 08, 2020 8:04 pm

Re: Boglehead simple portfolio for an aussie

Post by settlement12 »

Beensabu wrote: Mon Jul 26, 2021 8:08 pm
settlement12 wrote: Mon Jul 26, 2021 8:00 pm I know that's just speculation but it's what I'm comfortable with.
You're not comfortable with it, or else you would have it in your own portfolio.

What about her? Is she comfortable with it?
If I were starting my own portfolio now I would buy it. But I wouldn't sell all my equities now to buy it, for tax reasons etc.
phantom0308
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Joined: Thu Aug 25, 2016 6:52 pm
Location: San Mateo, CA

Re: Boglehead simple portfolio for an aussie

Post by phantom0308 »

settlement12 wrote: Mon Jul 26, 2021 8:00 pm But equities are incredibly and illogically high right now so I think she should have some.
Someone will always think prices are too high. That’s how the market price is determined.
There are posts going back a decade on this site with people saying surely there will be a correction now and interest rates have nowhere to go but up.
https://www.bogleheads.org/forum/viewt ... p?t=212329
SR7
Posts: 106
Joined: Fri May 15, 2020 4:06 am
Location: Down Under

Re: Boglehead simple portfolio for an aussie

Post by SR7 »

settlement12 wrote: Mon Jul 26, 2021 3:31 am
I've settled on (after 6 month's expenses)
1. VDHG = 70%
2. Gold = 15%
3. Government bonds = 15%.

I'm happy with VDHG and how to buy it. However, since gold and bonds don't form part of my own portfolio...
I’m no expert, but I like VDHG (Vanguard Diversified High Growth) it’s a 90/10 portfolio. If you want more bonds I see two options (1) buy more bonds such as VAF (Aust. Fixed Interest- Gov. & Quality Corporate Bonds) / VGB (Aust. Gov Bonds) or (2) get VDGR (Vanguard Diversified Growth) it’s a 70/30 portfolio but otherwise similar to VDHG. The first option allows you to sell bonds separate from stock if required. The second option is very simple.

You say you want gold because the stock market looks overvalued. You hear that a bit here, but you also hear the opposite, so who knows? If gold is more of a speculation than an investment, you could alternatively consider swapping your 15% gold for 15% VVLU (Vanguard Global Value active ETF). This looks for stock that isn’t overpriced according to Vanguard.

viewtopic.php?f=22&t=353747

“ Vanguard’s quantitative model implements a rules-based active approach that aims to assess the factor exposures of securities, favouring equity securities which, when compared to other securities in the investment universe, have lower prices relative to their fundamental measures of value (measures may include price-to-book, price-to-earnings ratio and price-to-operating cash flow).”
I studied Physics not Finance, so best to ignore anything I say about money.
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