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Your turn with our portfolio!
ekiss 04-01-2000, 7:23 PM | Post #23194 | 
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Hi Vanguard Diehards!

We are in early retirement with 40+ more years of life expectancy.
Tax Bracket: 28%fed (if we're lucky) 8% state
Risk tolerance 80stock/20bond--will increase bond % as we age.
Current Allocation;
58% Large Cap Stk Vanguard&actively mnged
12% Med/Small Cap same as above
10% Foreign actively managed only
14% Bonds I-Bonds & Convertible fund
_6%__ MM Vanguard Adm Treas MM
100% Total

My Goal Allocation for 2000:
42% Large Cap
18% Med/Small Cap
15% Foreign
20% Bonds
5% MM

401k balances are included in the above and consist of 2/3 Vanguard S&P 500 and 1/3 in a well-known giant tech co.
Today in total, our taxable accounts/tax-deferred = 60%/40%

Now, we will be receiving a final large influx of (taxable) cash in the next 2-3 months that will double our total taxable account balance.

I would like to keep all current mutual funds, and just use new cash to rebalance to my (less risky) goal allocation above. I have decided to add to our Vg Extended Market(VEXMX) and Tax-Mangd Small Cap (VTMSX) to offset our old co's very large 401k contribution in Vg S&P 500.

Now to the fun part! I have reviewed many Vg Diehard conv's and checked out lotsa Vg literature and have decided I lean toward (Taylor's &others) simple elegance of putting the rest of our stk allocation in Vg Total Stk Market (VTSMX). I project 4-5% annual w/drawals from the combined portfolio

But, finally Vg Diehard friends, am I missing some possible combination of Vg tax-managed or Vg LifeStrategy or other funds that would be a better fit for a largely taxable 4-5 decade retirement portfolio?

{I would like to limit taxes of course, with the Vg Tax-managed funds; but, don't want to shoot myself in the foot by paying redemption fees for 5 years if I need to w/draw.}

I have learned alot from this forum and appreciate your feedback, tips, and strategies very much!

Thanks alot!
Trish

Originally posted in thread: 5266
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