VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

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Voltaire20
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Joined: Wed Feb 05, 2020 8:53 am

VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by Voltaire20 »

I'm trying to streamline my Tax-deferred holdings and get to 50/50 allocation (stocks/fixed). The Life Strategy funds are appealing but don't like quite so much International equities (i.e. would like 25% int'l. rather than 39% in the LS mix).
I know I could hold 50 % LS Cons. Growth and 50% LF Moderate Growth and get to 50/50 allocation but the int'l. would still be too high for my tastes.

My question to my fellow Bogleheads is: should I go with the LF cons. growth allocation (40/60) but add separate VTI to get up to 50/50 and dilute the int.'l. to 25% or so of the equities? Or something like that. Or alternatively, go with LF MG and dilute the 60/40 down to 50/50 and somehow get to 25% int'l.

I'm just wondering if there is some simple, creative way to do it. I'm not that good at math. There may be an obvious solution that I just can't see.

PS. I know I could create my own allocation with ETFs, etc. but like to put things on auto-pilot with minor tinkering. That is why the Vanguard LF funds are appealing.

Thanks.
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David Jay
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by David Jay »

You could hold half LS Conservative (40:60) and half Balanced Index fund (60:40) which holds no international. You would end up 50/50 and your resulting international would be something around 16%.

You can increase the amount of international by adding in a little bit of Total International.
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bgf
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by bgf »

The iShares Core Allocation ETFs I think hold closer to 67% US, so they get you a little closer than Vanguard to your desired US/International split.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
Blue456
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by Blue456 »

Voltaire20 wrote: Thu Dec 02, 2021 1:41 pm I'm trying to streamline my Tax-deferred holdings and get to 50/50 allocation (stocks/fixed). The Life Strategy funds are appealing but don't like quite so much International equities (i.e. would like 25% int'l. rather than 39% in the LS mix).
I know I could hold 50 % LS Cons. Growth and 50% LF Moderate Growth and get to 50/50 allocation but the int'l. would still be too high for my tastes.

My question to my fellow Bogleheads is: should I go with the LF cons. growth allocation (40/60) but add separate VTI to get up to 50/50 and dilute the int.'l. to 25% or so of the equities? Or something like that. Or alternatively, go with LF MG and dilute the 60/40 down to 50/50 and somehow get to 25% int'l.

I'm just wondering if there is some simple, creative way to do it. I'm not that good at math. There may be an obvious solution that I just can't see.

PS. I know I could create my own allocation with ETFs, etc. but like to put things on auto-pilot with minor tinkering. That is why the Vanguard LF funds are appealing.

Thanks.
Wellington has some international so holding 50% Wellington and 50% vanguard life strategy conservative would give you about 50% stocks, 22.6% ex US.
GaryA505
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by GaryA505 »

David Jay wrote: Thu Dec 02, 2021 3:31 pm You could hold half LS Conservative (40:60) and half Balanced Index fund (60:40) which holds no international. You would end up 50/50 and your resulting international would be something around 16%.

You can increase the amount of international by adding in a little bit of Total International.
Yes.

To get about half the int'l equity as in the LifeStrategy series:
For a 50/50 portfolio: use 50% VSCGX (Vanguard LifeStrategy Conservative Growth) and 50% VBIAX (Vanguard Balanced Index)
For a 60/40 portfolio: use 50% VSMGX (Vanguard LifeStrategy Moderate Growth) and 50% VBIAX (Vanguard Balanced Index)

Either one of these has about 20% of the equity in int'l. Easy to buy, easy to maintain. Not much math involved (you just need to be able to divide by 2). I'm doing something similar to make it easier for my wife if I go to room temperature before she does.
Get most of it right and don't make any big mistakes. All else being equal, simpler is better. Simple is as simple does.
Mike Scott
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by Mike Scott »

It's been mentioned already upstream and it's the dominating core portion of my investments; a roughly 50/50 split between a Life Strategy fund and the Balanced Fund. Mix and match to personal taste. I also add a couple of other funds in modest amounts. However, at this point, the single fund strategy is blown so going directly to the three or four fund and dialing in exactly what you want may be as easy.
S_Track
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by S_Track »

Voltaire20 wrote: Thu Dec 02, 2021 1:41 pm I'm trying to streamline my Tax-deferred holdings and get to 50/50 allocation (stocks/fixed). The Life Strategy funds are appealing but don't like quite so much International equities (i.e. would like 25% int'l. rather than 39% in the LS mix).
I know I could hold 50 % LS Cons. Growth and 50% LF Moderate Growth and get to 50/50 allocation but the int'l. would still be too high for my tastes.

My question to my fellow Bogleheads is: should I go with the LF cons. growth allocation (40/60) but add separate VTI to get up to 50/50 and dilute the int.'l. to 25% or so of the equities? Or something like that. Or alternatively, go with LF MG and dilute the 60/40 down to 50/50 and somehow get to 25% int'l.

I'm just wondering if there is some simple, creative way to do it. I'm not that good at math. There may be an obvious solution that I just can't see.

PS. I know I could create my own allocation with ETFs, etc. but like to put things on auto-pilot with minor tinkering. That is why the Vanguard LF funds are appealing.

Thanks.
Just in case you have not seen these, Morning star X-Ray is a great tool to help you determine your allocation especially with multiple balanced funds, https://www.morningstar.com/instant-x-ray although you have to setup a free account to use it. You can also use the https://www.portfoliovisualizer.com/backtest-portfolio which does not require an account. Both will show you Stock to Bond and percent allocated to international.
Topic Author
Voltaire20
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Joined: Wed Feb 05, 2020 8:53 am

Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by Voltaire20 »

Thanks all for the feedback. I think there is a market for a single 50/50 balanced etf or fund with range of choices for international exposure. Will construct my own based on feedback received.
sycamore
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by sycamore »

bgf wrote: Thu Dec 02, 2021 4:46 pm The iShares Core Allocation ETFs I think hold closer to 67% US, so they get you a little closer than Vanguard to your desired US/International split.
At present, AOR is about 60/40 US/International. See https://www.ishares.com/us/products/239 ... cation-etf.
Maybe iShares recently changed the AA for international?
bgf
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Re: VG Life Strategy Funds: How to Get to 50/50 w/25%Int.

Post by bgf »

sycamore wrote: Fri Dec 03, 2021 8:57 am
bgf wrote: Thu Dec 02, 2021 4:46 pm The iShares Core Allocation ETFs I think hold closer to 67% US, so they get you a little closer than Vanguard to your desired US/International split.
At present, AOR is about 60/40 US/International. See https://www.ishares.com/us/products/239 ... cation-etf.
Maybe iShares recently changed the AA for international?
when i posted i checked AOK. went to exposure breakdowns - > georgraphy, and its showing 66.49% US. weird that they wouldn't keep that constant across their ETF range... im pretty sure vanguard does.

https://www.ishares.com/us/products/239 ... cation-etf
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
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