Still using total bond market?

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grobertj
Posts: 62
Joined: Fri May 15, 2020 1:02 pm
Location: Greensboro, NC

Re: Still using total bond market?

Post by grobertj » Fri Jul 31, 2020 11:03 am

For all the reasons stated earlier in this post, I continue to believe I am best served by remaining in 100% Wellesley Admiral Share (VWIAX). It's allocation is roughly 40% stocks and 60% bonds. But it's actively managed by people who understand bonds and stocks a heckuva lot better than me. I've back tested VWIAX against the 3 and 4 fund portfolio, and it returns more than either one. I'm considering lowering my bond allocation and would like opinions on the best way to do that. My current preference is to add some Wellington fund (VWENX). Another option is a Growth fund like VUG, which is weighted heavily towards the stocks that are hot right now. Thoughts?
The only constant is CHANGE!!

Blue456
Posts: 825
Joined: Tue Jun 04, 2019 5:46 am

Re: Still using total bond market?

Post by Blue456 » Fri Jul 31, 2020 11:23 am

grobertj wrote:
Fri Jul 31, 2020 11:03 am
[T]he stocks that are hot right now. Thoughts?
That sounds like recency bias. Be careful not to buy high and sell low.

milktoast
Posts: 266
Joined: Wed Jul 10, 2019 8:17 pm

Re: Still using total bond market?

Post by milktoast » Fri Jul 31, 2020 11:26 am

USAFperio wrote:
Fri May 15, 2020 6:34 pm
When people on this thread are saying they’re still using Total Bond Market or whatnot during these low-yielding times, are they/you meaning you’re sticking with what you already own (thus simply not selling), or that you’re actually putting more money into TBM? That seems like a big but unaddressed difference.
I'm currently putting 2/3 of my monthly contributions into TBM. After rebalancing into stocks in March, I'm overweight on stocks but not enough to trigger a rebalance.

And it doesn't feel right.

I'm doing it because that's what my IPS says. But honestly, I feel like it's buying a turd every two weeks. SEC yield 1.17%. Ugh. Below inflation.

Being 5-10 years from retirement, if rates go up I'm going to take a bath on this thing. But I see no decent alternatives right now, especially in my 401k/NQDC where I'm keeping all my bonds.

sycamore
Posts: 880
Joined: Tue May 08, 2018 12:06 pm

Re: Still using total bond market?

Post by sycamore » Fri Jul 31, 2020 12:10 pm

grobertj wrote:
Fri Jul 31, 2020 11:03 am
For all the reasons stated earlier in this post, I continue to believe I am best served by remaining in 100% Wellesley Admiral Share (VWIAX). It's allocation is roughly 40% stocks and 60% bonds. But it's actively managed by people who understand bonds and stocks a heckuva lot better than me. I've back tested VWIAX against the 3 and 4 fund portfolio, and it returns more than either one. I'm considering lowering my bond allocation and would like opinions on the best way to do that. My current preference is to add some Wellington fund (VWENX). Another option is a Growth fund like VUG, which is weighted heavily towards the stocks that are hot right now. Thoughts?
My thought is that you deserve a new thread to discuss your specific situation. See viewtopic.php?f=1&t=6212 for the format to use. Getting a reasonable answer for your question depends on knowing more details about you. Otherwise you'll just get generic answers like "VUG is the wrong thing to use, it's too risky" or "VUG is better than any bond right now" or "follow your IPS and AA".

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