If you could have only one fund, what would it be?
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If you could have only one fund, what would it be?
[admin note - check post dates, this is a thread from 2009 that has been restarted twice]
Curious. If you could only have one fund, what would it be? I know it's somewhat unrealistic, but with so many people asking for suggestions about portfolios with numerous funds, I wondered what they would choose if they could only have one? Thanks.
Curious. If you could only have one fund, what would it be? I know it's somewhat unrealistic, but with so many people asking for suggestions about portfolios with numerous funds, I wondered what they would choose if they could only have one? Thanks.
"The wants of mortals are containers that can never be filled." (Socrates)
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It would need to be a Vanguard Target retirement fund. No other could be diversified enough, adapt as I age, and have low fees (unless I had access to some great collective trust fund that was also a target retirement fund).
That said, given I have access to many funds, why let someone else have all the fun? I brew my own.
That said, given I have access to many funds, why let someone else have all the fun? I brew my own.
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A global balanced fund -- a global version of the domestically-centered VBINX. Vanguard does not have such a fund, so I would be faced with the problem of finding one that has a low ER and is not a "world allocation" fund disguised as global balanced (I don't like world allocation funds for the same reason I don't like asset allocation funds -- the fund manager gets to decide the percentages allocated to the various asset classes, and I prefer the fixed target percentages of a balanced fund). I would be sad to have my only fund not be a Vanguard one, but the benefit of global diversification is, IMO, worth paying a somewhat higher ER for.
Does anyone know of a good global balanced fund ? I looked at Fidelity's FGBLX but its ER is 1.13% and it looks too actively managed for my taste. I currently construct my own globally balanced portfolio using mostly Vanguard index funds (but Vanguard's dogmatic opposition to some asset classes means I have to go elsewhere for global bonds, global real estate, and global commodity stocks).
Edit added after reading other posts: The funds that target a retirement date are too domestically centered for me, and retirement is far enough that I do not yet have to worry about shifting my allocation over time.
Does anyone know of a good global balanced fund ? I looked at Fidelity's FGBLX but its ER is 1.13% and it looks too actively managed for my taste. I currently construct my own globally balanced portfolio using mostly Vanguard index funds (but Vanguard's dogmatic opposition to some asset classes means I have to go elsewhere for global bonds, global real estate, and global commodity stocks).
Edit added after reading other posts: The funds that target a retirement date are too domestically centered for me, and retirement is far enough that I do not yet have to worry about shifting my allocation over time.
Last edited by CaveatEmptor on Sat Nov 21, 2009 10:10 pm, edited 1 time in total.
Only one fund? I could pick one for different investor ages; however, without that criteria, it would be the appropriate Target Retirement fund for my present risk tolerance.
I still like Wellesley, though, plus at my age, mix that with Target Income for additional diversification.
Jim
I still like Wellesley, though, plus at my age, mix that with Target Income for additional diversification.
Jim
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
Mel,Mel Lindauer wrote:Vanguard's Target Retirement Income Fund would be my choice.
Isn't the issue with these types of funds that if you are investing it in a taxable account, it is somewhat tax inefficient? After all, with 45% of the fund in TBM it is somewhat wasteful to have that in a fully taxable account. The converse concept is also true about wasting tax advantaged space on growth funds. As has been often mentioned on this forum, it probably makes more sense to buy these funds seperately and place them into the appropriate accounts. Of course, the poster asked for "the one fund"...
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A Vanguard global balanced fund (or fund–of–funds) composed of
•40% Vanguard Global Equity (which is actively managed and somewhat value–tilted) or Total World Stock Index
•60% bonds, restricted to TIPS/GNMA/nominal Treasury (i.e., only "full faith and credit" government bonds). And, if Vanguard should ever offer an international bond fund composed mainly of foreign government obligations, a dash of that, too.
Except for the international bonds, this can, of course, be assembled by any investor from existing Vanguard funds––but not with a single $3000 opening minimum investment, and not with the same degree of continuously rebalancing/all–in–one convenience.
Marc
•40% Vanguard Global Equity (which is actively managed and somewhat value–tilted) or Total World Stock Index
•60% bonds, restricted to TIPS/GNMA/nominal Treasury (i.e., only "full faith and credit" government bonds). And, if Vanguard should ever offer an international bond fund composed mainly of foreign government obligations, a dash of that, too.
Except for the international bonds, this can, of course, be assembled by any investor from existing Vanguard funds––but not with a single $3000 opening minimum investment, and not with the same degree of continuously rebalancing/all–in–one convenience.
Marc
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Target Retirement Income.
(But no argument at all with those who prefer Wellington and Wellesley).
It's actually pretty weird: my homebrew portfolio is really within striking distance of the composition of Target Retirement Income. But I have the illusion of a meaningful difference, notably a much higher commitment to TIPS, and if I did a "total makeover" to Target Retirement Income-plus-outriggers I'd have almost as many mutual funds as I do now.
(But no argument at all with those who prefer Wellington and Wellesley).
It's actually pretty weird: my homebrew portfolio is really within striking distance of the composition of Target Retirement Income. But I have the illusion of a meaningful difference, notably a much higher commitment to TIPS, and if I did a "total makeover" to Target Retirement Income-plus-outriggers I'd have almost as many mutual funds as I do now.
Last edited by nisiprius on Sun Nov 22, 2009 10:29 am, edited 1 time in total.
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Isn't that why its ticker symbol is vWINx?snodog wrote:You can't beat Wellesley.

I'm going to be a mischievous troublemaker here. Gold is not for me. Not by itself, not in a Harry Browne Permanent Portfolio, not in the Permanent Portfolio fund (PRPFX, 0.84% ER). But listening to craigr and others on the form has certainly encouraged me to poke my nose around. And you know what? Just sayin'... past performance, yadda-yadda-yadda, but doesn't this chart start the old oxygen flowing to the parts of the brain that govern irrational behavior?

VBINX = Vanguard Balanced Index = what I have.
VWINX = Wellesley = aw, gee, what I coulda had.
VWELX = Wellington. Or is it the other way around? These "Wel-" funds, I never can get 'em straight in my mind. Oh well, doesn't matter, the two curves are close enough anyway.

PRPFX = Permanent Portfolio Funds, Inc. "Permanent Portfolio" fund, $3.4 billion assets under management, OMG, look at THAT, I coulda been rich, RICH I tell you, noooooooooo!
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Fletch wrote:It would be Vanguard's Target Retirement Income for me based on my ability, willingness and need to take risk.
Ditto.
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Obviously we always preach tax-efficiency (bonds in your tax-deferred and tax-efficient equity funds in your taxable account). You're certainly correct that the TR Income fund doesn't fit that pattern.ilan1h wrote:Mel,Mel Lindauer wrote:Vanguard's Target Retirement Income Fund would be my choice.
Isn't the issue with these types of funds that if you are investing it in a taxable account, it is somewhat tax inefficient? After all, with 45% of the fund in TBM it is somewhat wasteful to have that in a fully taxable account. The converse concept is also true about wasting tax advantaged space on growth funds. As has been often mentioned on this forum, it probably makes more sense to buy these funds seperately and place them into the appropriate accounts. Of course, the poster asked for "the one fund"...
However, this is a hypothetical (only can own one fund). And, if the retiree who owned TR Income fund was living off the distributions, then tax-efficiency isn't a factor.
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single fund
I have struggled with the choice between Wellsley and Target Retirement Income. It is extremely difficult to chose against Wellsley given its remarkable long term performance. Negatives would be active management (although its been great so far!) and relatively small number of equities. Given the current economic situation, the unbelievable amt of money the government is throwing around, and the high liklihood of inflation in the future, TRI would get the nod with its 20% TIPS allocation. The way things are playing out in my portfolio its looking like it will be split between the two, with Wellsley getting about 40% and TRI 60%. Plan on sleeping great with these two funds. Simple and keeps me from tinkering with a slice and dice approach. Regards, Peter
I have been watching these 2 for years....
And i finally bought into them VTSMX and VFINX
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Re: If you could have only one fund, what would it be?
[admin note - thread restarted here, earlier posts are from 2009]
I've had VWINX for years in my retirement account as my foundation. I leave some extra money to play around with, emerging markets, real estate, etc. I have to admit that, without fail, VWINX keeps on truckn. I'd probably have a lot less in my account if it wasn't for VWINX.
I've had VWINX for years in my retirement account as my foundation. I leave some extra money to play around with, emerging markets, real estate, etc. I have to admit that, without fail, VWINX keeps on truckn. I'd probably have a lot less in my account if it wasn't for VWINX.
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Re: If you could have only one fund, what would it be?
The appropriate target fund.
That, or the fund that will have the best returns moving forward.
RM
That, or the fund that will have the best returns moving forward.
RM
I figure the odds be fifty-fifty I just might have something to say. FZ
Re: If you could have only one fund, what would it be?
Vanguard target retirement
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.
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Re:
This but with a lower expense ratio.maywood wrote:Vanguard Total Stock Market Index
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
Re: If you could have only one fund, what would it be?
That would be T. Rowe Price Retirement 2020, Expense ratio = 0.70 %gerrym51 wrote:TRRBX
For comparison, Schwab Target 2020 Fund SWCRX, Expense ratio is reported as gross: 0.73% or net: 0.67%. I didn't read the prospectus to see why it's reported like that.
- Fidelity Freedom® 2020 Fund, Expense ratio = 0.64% (gross is the same as net)
- Vanguard Target Retirement 2020 Fund (VTWNX), Expense ratio = 0.16%
Remember that target retirement funds are "set and forget" funds. If investing with T. Rowe Price, Schwab, or Fidelity will keep you from making mistakes (and you can't, or don't want to, use Vanguard), these funds are fine.
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Re:
Beat me to it! (EDIT: As did a bunch of others!)Beagler wrote:Wellington
I have it at 95%. Also have REIT fund at 5%.
In a few years I will move that Wellington to Wellesely. I may I may start to slide in that direction as I get closer to needing to withdraw from my portfolio.
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Re: If you could have only one fund, what would it be?
LadyGeek wrote:That would be T. Rowe Price Retirement 2020, Expense ratio = 0.70 %gerrym51 wrote:TRRBX
For comparison, Schwab Target 2020 Fund SWCRX, Expense ratio is reported as gross: 0.73% or net: 0.67%. I didn't read the prospectus to see why it's reported like that.
- Fidelity Freedom® 2020 Fund, Expense ratio = 0.64% (gross is the same as net)
- Vanguard Target Retirement 2020 Fund (VTWNX), Expense ratio = 0.16%
Remember that target retirement funds are "set and forget" funds. If investing with T. Rowe Price, Schwab, or Fidelity will keep you from making mistakes (and you can't, or don't want to, use Vanguard), these funds are fine.
ladygeek- i've had trrbx for 10 years i like it-i know its .7 but trp keeps larger percentage of stocks in 2020 funds and until date approaches-it's the one i would pick if it came down to one-to each his own
TRRBX about 70 percent stock 30 percent bond
Last edited by gerrym51 on Thu May 30, 2013 6:31 pm, edited 1 time in total.
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Re: If you could have only one fund, what would it be?
Target date fund.
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Re: If you could have only one fund, what would it be?
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
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Re:
+1.............In fact that is the only Fund I own.Mel Lindauer wrote:Vanguard's Target Retirement Income Fund would be my choice.
All I have to do is go fishing.