Hi folks, what are your thoughts on William Bernstein's "No-Brainer Portfolio"? (Description pasted at the bottom.) For awhile, I have held some VFINX with the idea of eventually expanding my investing into other Vanguard funds to create one of the lazy portfolios. I was thinking of starting with the addition of VBMFX (similar to the "Couch Potato Portfolio") just so that I don't have to buy all those funds at once.
I have Bernstein's "The Four Pillars of Investing" in the line-up for reading, but it's doubtful I'll get through until the new year. In any event, with the "fiscal cliff" stuff in the news lately, I'm wondering whether any of these segments make *obvious* sense either to buy now or buy next year (or whether the "fiscal cliff" risk really wouldn't make a difference either way on my choice). I wish I could get up to speed quickly, but with current work demands, I just can't, and am wondering whether the knowledge is already available from the other folks on here.
Here's some information that I anticipate being useful:
Stats: 31 years, not married, no kids
Risk aversion: I would consider myself fairly average for my age
Retirement plans: for now, probably something standard around 60 or so, but haven't thought too concretely, especially since I hope to get married and have a family, which could impact that decision substantially
Roth 401(k) & Traditional 401(k): Schwab Managed Retirement Trust Fund 2040
Roth IRA: Vanguard Target Retirement 2040 Fund
For now, assume that I could afford whatever amounts are necessary to get the balance for The No-Brainer Portfolio, though given the amount I have of VFINX now, I couldn't soundly immediately jump to a perfect 25/25/25/25 split.
Edit: Another alternative I've pondered is simply getting the VFINX to admiral share status first and then begin adding other funds. This first part is easily attainable, but I've been getting there more slowly in order to invest evenly over time rather than larger chunks at once.
Thanks so much!
Source: http://www.getrichslowly.org/blog/2009/ ... t-success/
The No-Brainer Portfolio from William Bernstein
•25% — Vanguard 500 Index (VFINX)
•25% — Vanguard Small-Cap Index (NAESX)
•25% — Vanguard Total International Stock Index (VGTSX)
•25% — Vanguard Total Bond Market Index (VBMFX)
William Bernstein is a retired neurologist who has turned his attention to financial matters. He wrote The Four Pillars of Investing, which is one of the best books on investing I’ve ever read (my review). In that book, he offers a variety of possible investment portfolios. This “no-brainer” collection of index funds keeps things simple.