Q:
I know these are not index funds ... but what is wrong with holding FPURX (Fidelity Puritan) or VWELX (Vanguard Wellington) as long as they fit my asset allocation profile?
Background:
My spouse is already retired and I am getting close. I am trying to make our portfolio as simple as possible for our future needs. My spouse is not interested at all in the market so I've been researching one fund portfolios which fit our desired asset allocation. I know that my spouse will not rebalance a portfolio ever, nor will she log in and analyze which holding to draw from each month. She is 100% set it and forget it.
It appears that Puritan, Wellington, and perhaps the balanced index funds (VBIAX and FBALX) would fit the majority of our needs. We would hold (one of) these funds in our tax advantage accounts. Taxable brokerage would continue to be a three fund type mix (VTI, VXUS, and Treasuries, MM, SGOV).
In researching these one-fund solutions the history of returns and volatility look acceptable and on par with the three fund portfolio of similar asset allocation. Most of them are a little light on international equity, which could be boosted with some VXUS in taxable if desired.
We are also in a lower tax bracket currently (12%) if that makes any difference.
What would be the disadvantages of moving our portfolio into Puritan or Wellington (or VBIAX/FBALX)?
I know these are not index funds ... but what is wrong with holding FPURX (Fidelity Puritan) or VWELX (Vanguard Wellington) as long as they fit my asset allocation profile?
Background:
My spouse is already retired and I am getting close. I am trying to make our portfolio as simple as possible for our future needs. My spouse is not interested at all in the market so I've been researching one fund portfolios which fit our desired asset allocation. I know that my spouse will not rebalance a portfolio ever, nor will she log in and analyze which holding to draw from each month. She is 100% set it and forget it.
It appears that Puritan, Wellington, and perhaps the balanced index funds (VBIAX and FBALX) would fit the majority of our needs. We would hold (one of) these funds in our tax advantage accounts. Taxable brokerage would continue to be a three fund type mix (VTI, VXUS, and Treasuries, MM, SGOV).
In researching these one-fund solutions the history of returns and volatility look acceptable and on par with the three fund portfolio of similar asset allocation. Most of them are a little light on international equity, which could be boosted with some VXUS in taxable if desired.
We are also in a lower tax bracket currently (12%) if that makes any difference.
What would be the disadvantages of moving our portfolio into Puritan or Wellington (or VBIAX/FBALX)?
Statistics: Posted by Badgered — Wed Sep 04, 2024 9:22 am — Replies 18 — Views 796