Author Topic: Review my investments - too much vanguard?  (Read 4928 times)

moneymamma

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Review my investments - too much vanguard?
« on: February 17, 2015, 03:44:08 PM »
Hi Everyone- I have learned a ton by reading this blog (which I do every day).  Last year my husband and I put automatic investment in place and have our investments allocated here.  This doesn't include his 401K which is around $300K and I don't know what funds.  He needs to share the specifics with me.  I believe it is a Charles Schwab Life fund.   

Question is this too much Vanguard since I have this in my 401K and Vanguard separate account?

Here is what we do
-Max out 401K:  Vanguard funds, Russell International and BTC Lifepath 2040 - over $500K here.  $325K are Vanguard Funds.
Vanguard Funds:  VIIX; VBIPX; VIVIX; VIGIX; VSGIX
-Company Stock: Roughly $275K here.  Slowly selling off and diversifying.  It pays a good dividend
-Fidelity Personal Account - Various funds - non-vanguard - $100K
-ESPP: $25K/year
-Vanguard - $118K - Personal Account:  VTSMX; VFINX; VGTSX; VSTBX - $5K a month going here?
I set this up on my own. 


trailrated

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Re: Review my investments - too much vanguard?
« Reply #1 on: February 17, 2015, 03:54:09 PM »
Think of vanguard as the vehicle that you do your investments from. It is not the investments themselves.

If vanguard were a cup, it allows you to drink whatever you put in it. You are asking if you should change your cup, rather than what you decide to fill it with.

You might want to revisit your fund allocations...but you cannot go wrong with vanguard when it comes to price and quality.

dandarc

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Re: Review my investments - too much vanguard?
« Reply #2 on: February 17, 2015, 04:07:16 PM »
So almost $1.3 million total?  Way to go!  What is the number you're shooting for?

This seems relevant:
http://jlcollinsnh.com/2012/09/07/stocks-part-x-what-if-vanguard-gets-nuked/

So having 'too much' with Vanguard I wouldn't worry about.

johnny847

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Re: Review my investments - too much vanguard?
« Reply #3 on: February 17, 2015, 04:21:35 PM »
Think of vanguard as the vehicle that you do your investments from. It is not the investments themselves.

If vanguard were a cup, it allows you to drink whatever you put in it. You are asking if you should change your cup, rather than what you decide to fill it with.

You might want to revisit your fund allocations...but you cannot go wrong with vanguard when it comes to price and quality.
+1

It is not the fact that you use Vanguard, Fidelity, Charles Schwab, etc. that can make your portfolio risky. Vanguard is merely a provider of funds. It is the underlying assets that you want to concern yourself with when considering risk.


I for one believe that there is no such thing as too much Vanguard, unless you have so much money that you actually don't need to buy an index fund, and instead should just buy the stocks that make up the index.

moneymamma

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Re: Review my investments - too much vanguard?
« Reply #4 on: February 17, 2015, 04:34:55 PM »
Thanks all!   Good advice on the cup.  I will read the article.

Dandarc: Thanks.  My goal is $3M but considering stopping working in June..as my husband doesn't want to quit.  We live in a high cost area so ultimately if we wanted to both retire we would need to move to a lower cost area.  Which we could retire now if we moved.  Our total is $1.3M without 529 or house equity.

I really want to quit. I do like my job but it is a long commute and I have young kids.  I have a big stock vest in September but really want to take the summer.  It is like I am addicted to work! Which is not a good thing.

Ultimately I would like to move somewhere with more of an outdoorsy lifestyle and better weather but I am chicken.
Where is live is good though.  nice community. walkable town and great public schools.  Just not my ideal.

But tracking everything has been a great start and actually having an investing plan in place


TheThirstyStag

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Re: Review my investments - too much vanguard?
« Reply #5 on: February 19, 2015, 08:27:41 AM »
Think of vanguard as the vehicle that you do your investments from. It is not the investments themselves.

If vanguard were a cup, it allows you to drink whatever you put in it. You are asking if you should change your cup, rather than what you decide to fill it with.

You might want to revisit your fund allocations...but you cannot go wrong with vanguard when it comes to price and quality.

I love this analogy. 

And in my opinion, Vanguard is the Contigo of the cabinet. 

tdccarpenter

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Re: Review my investments - too much vanguard?
« Reply #6 on: February 19, 2015, 10:53:22 AM »
Think of vanguard as the vehicle that you do your investments from. It is not the investments themselves.

If vanguard were a cup, it allows you to drink whatever you put in it. You are asking if you should change your cup, rather than what you decide to fill it with.

You might want to revisit your fund allocations...but you cannot go wrong with vanguard when it comes to price and quality.
+1

It is not the fact that you use Vanguard, Fidelity, Charles Schwab, etc. that can make your portfolio risky. Vanguard is merely a provider of funds. It is the underlying assets that you want to concern yourself with when considering risk.


I for one believe that there is no such thing as too much Vanguard, unless you have so much money that you actually don't need to buy an index fund, and instead should just buy the stocks that make up the index.

This is practically sound, but technically incorrect as you still have some degree, albeit small, of institutional risk.

johnny847

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Re: Review my investments - too much vanguard?
« Reply #7 on: February 19, 2015, 11:37:21 AM »
Think of vanguard as the vehicle that you do your investments from. It is not the investments themselves.

If vanguard were a cup, it allows you to drink whatever you put in it. You are asking if you should change your cup, rather than what you decide to fill it with.

You might want to revisit your fund allocations...but you cannot go wrong with vanguard when it comes to price and quality.
+1

It is not the fact that you use Vanguard, Fidelity, Charles Schwab, etc. that can make your portfolio risky. Vanguard is merely a provider of funds. It is the underlying assets that you want to concern yourself with when considering risk.


I for one believe that there is no such thing as too much Vanguard, unless you have so much money that you actually don't need to buy an index fund, and instead should just buy the stocks that make up the index.

This is practically sound, but technically incorrect as you still have some degree, albeit small, of institutional risk.
If you want to quibble about this, then sure, there's institutional risk for assets beyond $500k because of SIPC protection (assets held at Vanguard do have SIPC protection): http://www.sipc.org/for-investors/what-sipc-protects

So sure, if you think that institutional risk is worth fretting over, then split your assets among institutions such that you don't have more than $500k per institution.

But as you imply, practically speaking, this isn't something you should concern yourself with.