The One-Fund Portfolio as a default suggestion

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dkturner
Posts: 1763
Joined: Sun Feb 25, 2007 7:58 pm

Re: The One-Fund Portfolio as a default suggestion

Post by dkturner »

FellsGuy wrote: Wed Nov 23, 2022 9:40 pm
SimpleGift wrote: Mon Aug 12, 2019 9:03 am As a couple who in the early 1990s (after selling our business) invested a lump sum in a balanced, all-taxable portfolio of Vanguard stock and bond funds — then added tilts to small caps, REITs and emerging markets over the years — I sometimes wish now that we had just gone the one-fund portfolio route.

It's not that managing a collection of diverse mutual funds in retirement is particularly onerous, but with all the embedded capital gains from several decades of investing, we don't now have the option of simplifying our portfolio (without massive tax consequences). Looking back, I believe investing everything in Vanguard's LifeStrategy Moderate Growth Fund at its inception in 1994 would have been a fine move.
Very interesting point thank you for the post, classic unintended consequences, or what if you had put it in Wellesley VWINX instead of lifestrategy
Wellesley has an equity allocation of only about 37.5%. It is much closer in asset allocation to LifeStrategy Conservative Growth (VSCGX). Wellesley would have been a much better choice than VSCGX.
Topic Author
longinvest
Posts: 5143
Joined: Sat Aug 11, 2012 8:44 am

Re: The One-Fund Portfolio as a default suggestion

Post by longinvest »

Charles Joseph wrote: Thu Nov 24, 2022 9:20 am longinvest -

I've always been intrigued by the idea of a one-fund solution and keep coming back to exploring it. Two questions if I may:

1. Where would cash fit in to a one-fund portfolio solution, in your opinion?
Charles Joseph, a high-interest savings account can be quite useful for storing cash, in the short term, for known upcoming expenses. It can also be useful for dampening income fluctuations during accumulation and (as illustrated in the VPW forward test thread) during retirement.

Most all-in-one index funds and ETFs available in the market place don't include a specific allocation to cash.
Charles Joseph wrote: Thu Nov 24, 2022 9:20 am 2. For the one-fund solution, what are you thoughts of using a low-cost active fund such as Wellesley Income Fund or Wellington Fund?
This thread is about (available) globally-diversified all-in-one index funds and ETFs. Active and single-country all-in-one funds and ETFs are off topic. But, they can be discussed in other threads. I seem to remember that such a thread was started a while ago. The site search should be able to locate it.
Charles Joseph wrote: Thu Nov 24, 2022 9:20 am Thank you!
You're welcome.
All-in-one global balanced index ETF | Variable Percentage Withdrawal (VPW) https://www.bogleheads.org/wiki/Variable_percentage_withdrawal
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