If you could have only one fund, what would it be?

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retcaveman
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If you could have only one fund, what would it be?

Post by retcaveman » Sat Nov 21, 2009 10:06 pm

[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.
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Post by Beagler » Sat Nov 21, 2009 10:10 pm

Wellington
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Mel Lindauer
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Post by Mel Lindauer » Sat Nov 21, 2009 10:11 pm

Vanguard's Target Retirement Income Fund would be my choice.
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fluffyistaken
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Post by fluffyistaken » Sat Nov 21, 2009 10:13 pm

Assuming fund of funds is not allowed, go with Wellesley or Wellington depending on whether you're more conservative or more aggressive. If fund of funds is allowed, then could go with one of the Target Retirement funds or maybe STAR.

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Post by Alex Frakt » Sat Nov 21, 2009 10:17 pm

If just one equity fund - Vanguard Mid Cap Value.

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Boglenaut
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Post by Boglenaut » Sat Nov 21, 2009 10:19 pm

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.

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dkdoy
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Post by dkdoy » Sat Nov 21, 2009 10:22 pm

Vanguard Target Retirement fund would also be my choice. However I really am a fan of Wellington. Wellington would be a close second

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Post by Petrocelli » Sat Nov 21, 2009 10:28 pm

Target Fund because it changes its bond allocation as you age.
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Post by tim1999 » Sat Nov 21, 2009 10:41 pm

Oakmark Equity & Income.

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Post by maywood » Sat Nov 21, 2009 10:41 pm

Vanguard Total Stock Market Index

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Post by joe8d » Sat Nov 21, 2009 10:53 pm

If it was in a tax advantaged account and had to be held forever,Life Strategy Moderate even with the "notorious" AA fund component. A TR fund if allowed to change after the accumulation stage.TSM if in a taxable account.
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Post by stevewolfe » Sat Nov 21, 2009 10:57 pm

I'd go again with the first one I invested in as I intended it to be a core holding and it has served me well: T. Rowe Price Capital Appreciation.

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Post by CaveatEmptor » Sat Nov 21, 2009 11:03 pm

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.
Last edited by CaveatEmptor on Sat Nov 21, 2009 11:10 pm, edited 1 time in total.

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Post by MWCA » Sat Nov 21, 2009 11:04 pm

Emerging Markets. Since I enjoy the thrill of a roller coaster ;)

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Post by Sheepdog » Sun Nov 22, 2009 12:48 am

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.
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Post by Winthorpe » Sun Nov 22, 2009 12:57 am

Wellington

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Post by jonesy » Sun Nov 22, 2009 1:11 am

Wellington

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Post by ilan1h » Sun Nov 22, 2009 3:09 am

Mel Lindauer wrote:Vanguard's Target Retirement Income Fund would be my choice.


Mel,
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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Post by TJAJ9 » Sun Nov 22, 2009 3:57 am

Only one equity fund? Total World Index.
Only one bond fund? Total Bond Index.
Having really ONLY one fund? I'd probably go with one of Vanguard's TR funds...maybe even Wellington or Wellesley as I got older.

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Fletch
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Post by Fletch » Sun Nov 22, 2009 6:17 am

It would be Vanguard's Target Retirement Income for me based on my ability, willingness and need to take risk.
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Post by norookie » Sun Nov 22, 2009 6:22 am

I was thinking the same thing. I stray a bit but ideally 50% Wellselley/ 50% Wellington/ 100% would be a TR fund.
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snodog
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Post by snodog » Sun Nov 22, 2009 10:34 am

You can't beat Wellesley.

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Post by beardsworth » Sun Nov 22, 2009 10:47 am

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

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teacher
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Post by teacher » Sun Nov 22, 2009 10:48 am

Wellington for now and Wellesley for later.

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Post by nisiprius » Sun Nov 22, 2009 11:07 am

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.
Last edited by nisiprius on Sun Nov 22, 2009 11:29 am, edited 1 time in total.
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Post by LynnC » Sun Nov 22, 2009 11:20 am

Wellington.

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Post by nisiprius » Sun Nov 22, 2009 11:27 am

snodog wrote:You can't beat Wellesley.
Isn't that why its ticker symbol is vWINx? :D

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?
Image
VBINX = Vanguard Balanced Index = what I have.
VWINX = Wellesley = aw, gee, what I coulda had. :cry:
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. :D
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!
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Post by chaz » Sun Nov 22, 2009 11:53 am

Fletch wrote:It would be Vanguard's Target Retirement Income for me based on my ability, willingness and need to take risk.



Ditto.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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Mel Lindauer
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Post by Mel Lindauer » Sun Nov 22, 2009 12:01 pm

ilan1h wrote:
Mel Lindauer wrote:Vanguard's Target Retirement Income Fund would be my choice.


Mel,
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"...


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.

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.
Best Regards - Mel | | Semper Fi

traumamoma
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single fund

Post by traumamoma » Sun Nov 22, 2009 4:41 pm

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

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Post by am » Sun Nov 22, 2009 4:47 pm

wasatch microcap value :shock:

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Post by durhamlad » Sun Nov 22, 2009 4:50 pm

Given my age, Wellesley.

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Post by xerty24 » Sun Nov 22, 2009 6:52 pm


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Post by Latestarter » Sun Nov 22, 2009 8:04 pm

An ETF that holds Peruvian bonds.

spinkter
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I have been watching these 2 for years....

Post by spinkter » Sun Nov 22, 2009 8:19 pm

And i finally bought into them VTSMX and VFINX
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Post by Czilla9000 » Sun Nov 22, 2009 8:31 pm

Vanguard Dividend Appreciation (VIG or VDAIX) if passive....VIG is 40% of my allocation.

Longleaf Partners (LLPFX) if active.

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Post by chicagobear » Sun Nov 22, 2009 8:50 pm

Permanent Portfolio Fund (PRPFX)

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Post by yakers » Sun Nov 22, 2009 10:48 pm

For several years I used the target retirement type fund in my Federal TSP retirement account, my wife needed one fund and I steered her to....Wellesley. Easy to explain ad easy to live with.

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Post by aainvestor » Sun Nov 22, 2009 10:56 pm

Wellington or D&C Balanced

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Re: If you could have only one fund, what would it be?

Post by nickcaeb » Thu May 30, 2013 12:50 pm

[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.

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Re: If you could have only one fund, what would it be?

Post by Random Musings » Thu May 30, 2013 3:04 pm

The appropriate target fund.

That, or the fund that will have the best returns moving forward.

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Re: If you could have only one fund, what would it be?

Post by Rodc » Thu May 30, 2013 3:45 pm

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: If you could have only one fund, what would it be?

Post by gerrym51 » Thu May 30, 2013 3:47 pm

TRRBX :mrgreen:

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Re:

Post by InvestorNewb » Thu May 30, 2013 3:48 pm

maywood wrote:Vanguard Total Stock Market Index


This but with a lower expense ratio.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

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Re: If you could have only one fund, what would it be?

Post by LadyGeek » Thu May 30, 2013 4:00 pm

gerrym51 wrote:TRRBX :mrgreen:

That would be T. Rowe Price Retirement 2020, Expense ratio = 0.70 %

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:

Post by bertilak » Thu May 30, 2013 5:16 pm

Beagler wrote:Wellington

Beat me to it! (EDIT: As did a bunch of others!)
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?

Post by gerrym51 » Thu May 30, 2013 5:22 pm

LadyGeek wrote:
gerrym51 wrote:TRRBX :mrgreen:

That would be T. Rowe Price Retirement 2020, Expense ratio = 0.70 %

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?

Post by pennstater2005 » Thu May 30, 2013 5:38 pm

Target date fund.
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Re: If you could have only one fund, what would it be?

Post by MnD » Thu May 30, 2013 5:39 pm


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Re:

Post by Cut-Throat » Thu May 30, 2013 5:43 pm

Mel Lindauer wrote:Vanguard's Target Retirement Income Fund would be my choice.


+1.............In fact that is the only Fund I own.

All I have to do is go fishing.

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