Hi all,
I'm not sure whether I should be purchasing a Vanguard Target Date Fund (2045) or choosing a mix of individual index funds.
I would like to be investing more aggressively at my age, so I'm not a fan of the 10% bond ratio in the TDF. Also, my understanding is that since the TDF consists of 4 underlying indices, so I would need $40k to reach Admiral shares.
What is your general thoughts on that strategy? I was thinking a 70/30 split of Vanguard Total Stock Market Index Fund Investor Shares and Vanguard Total International Stock Index Fund Investor Shares, which would only require $20k to reach Admiral Shares. Is there a better rule of thumb to be calculating the percentages I'm holding of those two? Those two are what is held in the 2045 TDF so I assume a good option to hold.
My thoughts would be to essentially create a three-fund portfolio (https://www.bogleheads.org/wiki/Three-fund_portfolio), but with a 0% allocation to bonds. Down the line, I would then be able to increase my bond allocation in a non-tax advantaged account and keep my 70/30 mix in my tax-advantaged accounts
Additionally, how often should I be rebalancing if I go that route?
I've read Bogleheads Guide To Investing, but I'm still a little unsure as I'm trying to digest all of this at once now that I actually have money to invest. Thanks in advance!
Submitted October 29, 2018 at 12:07AM by 610hcire https://ift.tt/2yBonw8
