Do You Use More Than One Balanced Fund?

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GoneOnTilt
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Do You Use More Than One Balanced Fund?

Post by GoneOnTilt »

Does anyone use more than one type of balanced fund in their portfolio? If so, why?

By type, I mean funds with difference asset allocations, or asset classes (US vs international stocks and bonds), etc.
ruhigste
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Re: Do You Use More Than One Balanced Fund?

Post by ruhigste »

We use three Vanguard Lifestrategy funds: the Income Fund (VASIX - 20/80) for our emergency fund, the Conservative Growth Fund (VSCGX - 40/60) for our traditional IRA's, and the Growth Fund (VASGX - 80/20) for our Roth IRA's. All of these are re-balanced by Vanguard.
Mike Scott
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Re: Do You Use More Than One Balanced Fund?

Post by Mike Scott »

Yes; some accounts have different choices available and some funds have different characteristics which fit my IPS and some accounts do not have balanced funds. It's the total portfolio that matters. If this is a question about having the same portfolio replicated within each account, then that would not be possible for me even if I wanted to do it.
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GoneOnTilt
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Re: Do You Use More Than One Balanced Fund?

Post by GoneOnTilt »

ruhigste wrote: Sat Jul 24, 2021 8:32 am We use three Vanguard Lifestrategy funds: the Income Fund (VASIX - 20/80) for our emergency fund, the Conservative Growth Fund (VSCGX - 40/60) for our traditional IRA's, and the Growth Fund (VASGX - 80/20) for our Roth IRA's. All of these are re-balanced by Vanguard.
I use VASIX for my emergency fund as well (or as I call it, my "I-might-need-the-money-but-probably-not" fund). I also have FIKFX at Fidelity, and the Vanguard Balanced Index Fund (VBIAX).
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zincTwo
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Re: Do You Use More Than One Balanced Fund?

Post by zincTwo »

I use more than one, since the "time-to-withdraw" is different for different accounts. In one retirement account, I have a 2030 TDF... it will be one of the sooner accounts I withdraw from in retirement. I have another Roth IRA that will be one of the last accounts I withdraw from (~25 years from now)...so I have those moneys in a 2040 TDF. Different usage horizons, different glide path.
dharrythomas
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Re: Do You Use More Than One Balanced Fund?

Post by dharrythomas »

Yes. Target Retirement in traditional IRA, LifeCycle Fund in the TSP, Tax-Managed Balanced in taxable and LifeStrategy and Global Wellington in Roth accounts. I view these as different accounts, with different objectives and different time horizons. If I was starting over again, I’d probably add some bonds to the Roth and have all of the Taxable in Total World Stock Index.
sycamore
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Re: Do You Use More Than One Balanced Fund?

Post by sycamore »

GoneOnTilt wrote: Sat Jul 24, 2021 8:12 am Does anyone use more than one type of balanced fund in their portfolio? If so, why?
I use two different Vanguard LifeStrategy funds (in two different accounts) for a part of my portfolio. Together with other funds, they help keep my portfolio at my desired asset allocation.

One reason I use them is to help reduce the number of funds I need in the whole portfolio. This makes it easier for my DW to understand the portfolio.

Another reason I use them is that they automatically rebalance. Given that they are a significant portion of the portfolio, that means it's less likely that I or my DW need to do any rebalancing.
Rikaku
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Re: Do You Use More Than One Balanced Fund?

Post by Rikaku »

Not at the moment, but when I retire I intend to use three different balanced funds, each with a different approach to weather all storms :

1/3 VBIAX - 60/40 US
1/3 VSMGX - 60/40 Global
1/3 VWINX - Wellington - 65/35 active management
livesoft
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Re: Do You Use More Than One Balanced Fund?

Post by livesoft »

Sure do. In our HSAs at Fidelity we use FFEDX (a target date fund) with around a 60/40 AA. In inherited IRAs we use a Vanguard LifeStrategy fund with a 60/40 AA in one inherited IRA as well as FFEDX in another IRA. Since the IRAs are held at different custodians we naturally have different funds in them.

Why? These are small accounts in terms of overall portfolio percentage and not worth worrying about. They also serve as real-life benchmarks to compare to our portfolio which has an overall 60/40 asset allocation. Since they are held in tax-advantaged accounts, there is also no reason to try to be tax efficient with them.
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Oldaroo3
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Re: Do You Use More Than One Balanced Fund?

Post by Oldaroo3 »

To the OP: Thank you for asking this question. I keep asking myself lately if the funds I have chosen make sense which is causing me to want to tinker. Between DW and I we have VBIAX in 403(b) accounts. Mine is also mixed with a little VTIAX and VEXAX. My Roth has VTSAX and her Roth has VASGX. So yes, more than one balanced fund in accounts. I'm sure I could go simpler with just a three or four fund portfolio across the the four accounts, but this seems to be working well enough and puts the retirement accounts right about 80/20.
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NewTimes
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Re: Do You Use More Than One Balanced Fund?

Post by NewTimes »

Just today I spoke to a Vanguard rep about doing two balanced funds. Wife and I are in retirement for 3 years. We're looking for modest returns and dips. Our comfort level seems to put 1/2 in VBIAX (60/40 all US) and 1/2 in LS VSCGX (40/60 with some Int'l). We'll begin receiving maturing CDs mid 2022, 23 and 24. The thought process being split the cash between the two or if one is better positioned, weigh that one more. Any comments?

And, I will be selling some small M1 pies and placing those funds in the two balanced funds. Anyone have any experience on that and was the transition smooth or cumbersome?
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mikeyzito22
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Re: Do You Use More Than One Balanced Fund?

Post by mikeyzito22 »

ruhigste wrote: Sat Jul 24, 2021 8:32 am We use three Vanguard Lifestrategy funds: the Income Fund (VASIX - 20/80) for our emergency fund, the Conservative Growth Fund (VSCGX - 40/60) for our traditional IRA's, and the Growth Fund (VASGX - 80/20) for our Roth IRA's. All of these are re-balanced by Vanguard.
For those of you doing VASIX for your emergency fund, where are you holding it? Vanguard, another brokerage? Only in taxable?
L84SUPR
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Re: Do You Use More Than One Balanced Fund?

Post by L84SUPR »

TLDR: Wife has Wellington so I use 2065 to make the numbers work.

My wife holds Wellington in her 401K because it was the best choice when she started with that company.

I hold 2065 Target Date funds in my two old 401Ks to balance everything out.

Our first bucket, so to speak, was L2025 but is now G Fund bonds in my TSP.

So in order the buckets are
G Fund bonds 0/100
Wellington 65/35
TD 2065 90/10
Weighted Total 58/42
1/3rd VTWAX, 1/3rd Wellington, 1/3rd G Fund | All models are wrong. Some are useful.
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