Two fund in retirememt

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q2000er
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Joined: Thu Jan 10, 2019 9:19 pm

Two fund in retirememt

Post by q2000er » Thu Jan 10, 2019 9:28 pm

Any thoughts on using a two fund portfolio in retirement like: 50% Vanguard Wellesley and 50% Vanguard Wellington, 4% annual withdrawal with no increase for inflation on a total initial investment of $800,000 ?

nix4me
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Joined: Sat Oct 13, 2018 9:32 am

Re: Two fund in retirememt

Post by nix4me » Thu Jan 10, 2019 9:51 pm

Have you compared to a 2 fund of Total Stock / Total Bond? Cheaper.

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abuss368
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Re: Two fund in retirememt

Post by abuss368 » Thu Jan 10, 2019 9:52 pm

They are both active funds which exposes the investor to manager risks. The overall asset allocation could be more difficult to manage and provide more limited tax loss harvesting opportunities. I guess investors could definitely do a lot worse.

I would prefer Jack Bogle's Two Fund Portfolio instead which includes Total Stock Index and Total Bond Index.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

Beehave
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Re: Two fund in retirememt

Post by Beehave » Thu Jan 10, 2019 9:59 pm

If you want the 50-50 stock-to-bond allocation that would result from a 50-50 Wellington and Wellesley allocation, but you want to reduce fees and manager risk but keep some funds under management, you could consider putting 50% into Wellesley and 50% into Vanguard's Balanced index.

balbrec2
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Re: Two fund in retirememt

Post by balbrec2 » Thu Jan 10, 2019 10:01 pm

Beehave wrote:
Thu Jan 10, 2019 9:59 pm
If you want the 50-50 stock-to-bond allocation that would result from a 50-50 Wellington and Wellesley allocation, but you want to reduce fees and manager risk but keep some funds under management, you could consider putting 50% into Wellesley and 50% into Vanguard's Balanced index.
+1 excellent idea!

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birdog
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Re: Two fund in retirememt

Post by birdog » Thu Jan 10, 2019 10:12 pm

abuss368 wrote:
Thu Jan 10, 2019 9:52 pm

I would prefer Jack Bogle's Two Fund Portfolio instead which includes Total Stock Index and Total Bond Index.
Same here.

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