Author Topic: Help - Re-balance my Vanguard IRA portfolio  (Read 1599 times)

tkeppell

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Help - Re-balance my Vanguard IRA portfolio
« on: June 02, 2017, 08:59:24 AM »
I currently have an IRA account at Vanguard and am thinking of re-balancing my portfolio. Below is a list of holdings I have in my account. Any suggestions on making change to any of the funds or just keep the same? VGSLX has not been great and am leaning towards changing. What do you all recommend? My goal is to reduce the risk but also no lose out on the current market gains.

VDEQX   Vanguard Diversified Equity Fund Investor Shares - 10%
VHGEX   Vanguard Global Equity Fund Investor Shares - 15%
VGSLX   Vanguard REIT Index Fund Admiral Shares - 10%
VSEQX   Vanguard Strategic Equity Fund Investor Shares 10%
VTTHX   Vanguard Target Retirement 2035 Fund Investor Shares - 25%
VTIAX   Vanguard Total International Stock Index Fund Admiral Shares -10%
VWNAX    Vanguard Windsor II Fund Admiral Shares - 20%

tarheeldan

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Re: Help - Re-balance my Vanguard IRA portfolio
« Reply #1 on: June 02, 2017, 09:05:21 AM »
Re-balancing is selling the winners and buying the losers, in order to maintain your target allocation.

If you do what your emotions tell you to do - sell something because it "has not been great and [are] leaning towards changing" - then you'll always buy high, sell low. No bueno.

What is your target allocation?

I would note that there's a good bit of overlap, esp with VTTHX.
« Last Edit: June 02, 2017, 09:50:11 AM by tarheeldan »

AdrianC

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Re: Help - Re-balance my Vanguard IRA portfolio
« Reply #2 on: June 02, 2017, 12:43:00 PM »
That's kinda complicated with a lot of active funds, with relatively high expense ratios.

Many here would go with some combination of these:
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)

e.g.
48%
32%
20%

or buy Vanguard LifeStrategy Growth Fund (VASGX) and don't worry about rebalancing - they do it for you.


Heckler

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Re: Help - Re-balance my Vanguard IRA portfolio
« Reply #3 on: June 03, 2017, 07:47:15 AM »
What AdrianC said.

Here's why.

https://www.bogleheads.org/wiki/Getting_started


https://www.bogleheads.org/wiki/Bogleheads_investment_philosophy
You have to copy and paste the link due to the silly (R)

https://www.bogleheads.org/wiki/Three-fund_portfolio