Author Topic: Is the 3 Fund Portfolio the correct plan for a new retiree?  (Read 580 times)

atn1kxf

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Iím in the process of rolling over a $1.6 Million Traditional 401k from my former employer to a Vanguard Traditional IRA.  Based on my age (64), Iím considering a 60/40 allocation; VTI - 40%, VXUS - 20%, and VGIT - 40%.  Are these the correct stocks I should be focusing on or are there others I should consider?  At this stage in my life, I donít want to give up on growth, but preserving my capital is one of my priorities.

cool7hand

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Re: Is the 3 Fund Portfolio the correct plan for a new retiree?
« Reply #1 on: July 26, 2021, 06:14:28 AM »
You might consider taking a look at Ray Dalio's All Seasons (aka All Weather) Portfolio. We're in a similar situation and picked this portfolio because of its low volatility. For starters, you'll find info at https://www.bogleheads.org/forum/viewtopic.php?t=326822 and https://portfoliocharts.com/portfolios/.

atn1kxf

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Re: Is the 3 Fund Portfolio the correct plan for a new retiree?
« Reply #2 on: July 26, 2021, 07:42:42 AM »
Thank you!  I will take a look.

MDM

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Re: Is the 3 Fund Portfolio the correct plan for a new retiree?
« Reply #3 on: July 26, 2021, 11:35:07 AM »
Based on my age (64), Iím considering a 60/40 allocation; VTI - 40%, VXUS - 20%, and VGIT - 40%.
There is no single "correct" plan except in hindsight.  What you are considering is reasonable, and that is the best one can do (without a working crystal ball).  Good luck!

chevy1956

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Re: Is the 3 Fund Portfolio the correct plan for a new retiree?
« Reply #4 on: July 26, 2021, 05:23:16 PM »
I reckon a 3 fund portfolio is a great option. I am not a fan of any defensive portfolio like Ray Dalio's All Seasons (aka All Weather) Portfolio but you get to make that call. My take is stocks are what will keep you out of the poorhouse and you just need stuff around stocks so that you can handle a market crash.

In my opinion defensive portfolios with a low stock allocation are significantly more risky long term than a higher stock portfolio.