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Learning, Sharing, and Teaching => Investor Alley => Topic started by: rossinole on April 20, 2020, 11:37:47 AM

Title: One fund portfolio recs for a 33yo. with multiple accounts
Post by: rossinole on April 20, 2020, 11:37:47 AM
I'm 33yo. and have a taxable, roth IRA, 401k, and HSA. I'd like a simple, one fund portfolio that auto rebalances and has a 80/20 or 85/15  asset allocation that I can DCA into all of my accounts. I understand that something like that may not be the most tax efficient, but I'm not entirely sold that annual tax loss harvesting will save a material amount of money in the long run. Right now I'm looking at $AOA, but am open to other choices if there is a better performing, lower cost one fund portfolio for the long run.

Thanks for any recommendations.   
Title: Re: One fund portfolio recs for a 33yo. with multiple accounts
Post by: MDM on April 20, 2020, 12:01:31 PM
No idea what $AOA is, but FidelityŽ Four-in-One Index Fund (https://fundresearch.fidelity.com/mutual-funds/summary/31634R109) and Vanguard LifeStrategy Growth Fund (https://investor.vanguard.com/mutual-funds/profile/VASGX) are two that might fit your desire.

See also Tax-efficient fund placement - Bogleheads (https://www.bogleheads.org/wiki/Tax-efficient_fund_placement) for some non-tax-harvesting reasons you might consider.
Title: Re: One fund portfolio recs for a 33yo. with multiple accounts
Post by: MustacheAndaHalf on April 21, 2020, 09:45:38 PM
Sounds like OP means "iShares Core Aggressive Allocation ETF", which holds about 22% bonds:
https://www.ishares.com/us/products/239729/ishares-aggressive-allocation-etf#holdings

A retirement date fund sounds like a better choice.  Many of those are 90% equities when retirement is far away, and move closer to 60% equities as the fund's retirement date approaches.  If you planned to retire at age 68 (68 - 33 = 35 years from now), you could buy Vanguard Target Date 2055 which holds 90% stocks, for example:
https://investor.vanguard.com/mutual-funds/profile/portfolio/vffvx

When retirement is 10 years away, that fund will change to look more like Vanguard 2030 looks now:
https://investor.vanguard.com/mutual-funds/profile/portfolio/vthrx
(Which holds about 1/3rd bond and 2/3rds stocks)

Fidelity and Schwab also have target date funds.
Title: Re: One fund portfolio recs for a 33yo. with multiple accounts
Post by: seattlecyclone on April 22, 2020, 12:14:08 PM
The LifeStrategy Growth fund from Vanguard is exactly what you're looking for: 80/20 allocation, automatically rebalances.

I wouldn't recommend the target date funds for most early retirees. These funds automatically shift you into an extremely bond-heavy allocation once you hit your target retirement date. This may be a decent choice for someone expecting a 20-year retirement, but if you want your stash to last 40 or 50 years you're going to need to own quite a few stocks for the duration.