After 20+ years with Edward Jones, and almost no personal input on their fund management, I have finally converted my parents to the Boglehead lifestyle. I initiated a transfer today of all assets in EJ (a trad IRA & a Roth IRA) to Vanguard.
They are currently 65 and plan on retiring at 67 or 70, and their portfolio with EJ is allocated to 100% equities...
The underlying assets are the typically convoluted and complicated investments that EJ is known for, comprised of 12 varying index funds.
They are extremely conservative financially and have a low risk tolerance. This is why the 100% equities allocation is absurd to me. I am trying to determine the best allocation to assign when the funds arrive at Vanguard, and I would like to hear my fellow Boglehead's input on allocation with respect to their low risk tolerance.
I am considering the following strategies at different points on the risk spectrum:
I would reallocate each of the Lazy portfolios annually on a predetermined glide path.
With regards to the varying portfolios I've listed, my parents have no opinion on the allocations (they have little knowledge of asset classes and allocations despite my explanations in the past). Their only input is:
I have read The Little Book of Common Sense Investing as well as several articles here on the Bogleheads forum, however I welcome any additional resources for further reading!
Thank you for any input you can provide!
They are currently 65 and plan on retiring at 67 or 70, and their portfolio with EJ is allocated to 100% equities...
The underlying assets are the typically convoluted and complicated investments that EJ is known for, comprised of 12 varying index funds.
They are extremely conservative financially and have a low risk tolerance. This is why the 100% equities allocation is absurd to me. I am trying to determine the best allocation to assign when the funds arrive at Vanguard, and I would like to hear my fellow Boglehead's input on allocation with respect to their low risk tolerance.
I am considering the following strategies at different points on the risk spectrum:
- 2025 TDF (VTTVX): ~ 52% equities / 41% bonds / 6% TIPS / 1% market liquidity
- Lazy portfolio 1 (higher risk): 35% equities (VTI or VT) / 55% bonds (BND) / 10% TIPS (VTIP)
- Lazy portfolio 2 (moderate risk): 20% equities (VTI or VT) / 70% bonds (BND) / 10% TIPS (VTIP)
- Lazy portfolio 3 (lower risk): 10% equities (VTI or VT) / 80% bonds (BND) / 10% TIPS (VTIP)
- Lazy portfolio 4 (radically conservative): 90% bonds (BND) / 10% TIPS (VTIP)
I would reallocate each of the Lazy portfolios annually on a predetermined glide path.
With regards to the varying portfolios I've listed, my parents have no opinion on the allocations (they have little knowledge of asset classes and allocations despite my explanations in the past). Their only input is:
What are your opinions on the different portfolios I've listed, given the limited input from my parents? (basically, their goals are a conservative approach & preservation of capital)we don't want to lose all our money if/when the stock market crashes
I have read The Little Book of Common Sense Investing as well as several articles here on the Bogleheads forum, however I welcome any additional resources for further reading!
Thank you for any input you can provide!
Statistics: Posted by SASbogle — Sat May 18, 2024 2:15 pm — Replies 3 — Views 173