VSMGX and VNQ Portfolio

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jhiggi83
Posts: 2
Joined: Sat Jan 13, 2018 12:37 am

VSMGX and VNQ Portfolio

Post by jhiggi83 » Sat Jan 13, 2018 1:16 am

I recently funded my Vanguard Brokerage account. This will be my taxable general investing account as my retirement is managed by TSP in the L 2045. I have about 95% going into VSMGX(LifeStrategy Moderate Growth Fund 60/40 Stocks Bonds). I am also putting roughly 5% into VNQ(Vanguard REIT) because I feel like I need some exposure to Real Estate in my portfolio. Went this route to avoid robo advisor fees. Am I on the right track here? I went 60/40 because I wasn't comfortable at 80/20.

PFInterest
Posts: 679
Joined: Sun Jan 08, 2017 12:25 pm

Re: VSMGX and VNQ Portfolio

Post by PFInterest » Sat Jan 13, 2018 3:55 pm

i wouldnt do that. both are not tax efficient vehicles.
REITs are included in TSM. so you mean you wanted to overweight them?

alex_686
Posts: 2728
Joined: Mon Feb 09, 2015 2:39 pm

Re: VSMGX and VNQ Portfolio

Post by alex_686 » Sat Jan 13, 2018 4:00 pm

I am for overweighing REITs, but this is a topic of debate. I would sorta of agree with the OP - real estate is not propereraly represented in the market basket and REITs are a o.k. proxy. However, I would only do it in a tax advantaged space.

jhiggi83
Posts: 2
Joined: Sat Jan 13, 2018 12:37 am

Re: VSMGX and VNQ Portfolio

Post by jhiggi83 » Sun Jan 14, 2018 2:01 am

I chose VSMGX to get easy asset allocation since it split out the Domestic/International stock/bond mutual funds and I dont have a large enough portfolio to invest in those funds individually. I read all the information on lazy portfolios with etfs but without access to fractional shares I am lost on how to manage them. I am really just looking for growth in a regular investing account with regular contributions

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