Kind of like the lazy three fund portfolio?
Kind of like the lazy three fund portfolio?
I have a Vanguard REIT index fund that's really going pretty well these days.
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that's all assuming he'll keep it in stock, however if he is really scared of losing money, come the next recession, he won't. So in that case maybe consider a different strategy, really no point in buying stocks if your just going to try to time that market, that's just a waste, most anything works better than that (or something like bonds probably would at any rate).
Trees don't grow on money
Vanguard Wellington. Two thirds stocks, one third bonds and low management fees. Well diversified. Been around since 1929.
Is it closed to new investors though, Rogar, who do not have an account at Vanguard? His is with Schwab. I have Wellesley and thought of Wellington for him for the reasons you state.
Okay, just answered that question. Tried to buy VWELX from Schwab and it will not let me--closed to new investors.
Any Schwab equivalent that anyone can think to recommend?
I am following this earnestly. I have about $20K in laddered CD's that are getting okay interest, and it took years to get to that okay interest. Before that I had a fund that lost a lot of money for awhile. Now that the economy may be a little more stable I would like to get a better investment, (these are IRA funds also). I am not even sure where to start, and I am 50 and in excellent health, so planning on keeping money in for 20 years.
Coincidentally $10,000 is the limit (per social security number) a U S person can buy per year of Treasury I Bonds. Treasury I Bonds are bought and cashed through Treasury Direct, so no broker is involved. They cannot be cashed within 1 year.
They pay compound interest equal to CPI-U (a measure of US inflation) plus a "fixed rate" which currently is zero for bonds bought during the current 6-month period. The fixed rate will be reset by the US Treasury every 6 months for bonds purchased at that time. If cashed in years 2 through 5 the compounded interest would be reduced by a 3-month interest penalty. After year 5 they continue to compound for 25 more years.
The I Bond pushes money into the future with some inflation protection. The return is relatively small (unless inflation is unexpectedly rapid). But there is no risk of loss in case of deflation (as with TIPs), a stock market crash (as with an equity index fund), or rising interest rates (as with a bond fund). There is no default risk. (The Treasury promise to pay is backed by the full faith and credit of the United States.) Taxes are deferred until the I Bond is cashed.
I personally buy $10,000 I Bonds per year, generally near the end of May. To be able to do so, I set $833 aside each month in an online savings account. I intend to accumulate a ladder of I Bonds, buying $10K annually until 2020, and cash them in 2035.
In my view, securities markets are "priced for perfection", and buyers of bond and equity funds at the prices prevailing in September 2017 are likely to experience 12-year returns that will be zero or less. (For the reasoning behind the expectations of negative returns, look up John Hussman, Weekly Commentary.)
Nothing herein is to be construed as investment advice. I am stating personal opinion only.
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