I want to simplify my portfolio [Russia]

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V.T
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I want to simplify my portfolio [Russia]

Post by V.T »

Hello!
Sorry for mistakes in advance, English is not my first language.
I am 34 years old, I am forming a portfolio before retirement for 25 years, I plan to replenish it monthly.
I formed a portfolio like this:
Voo 50
Qqq 10
Vb 5
Vea 10
Mchi 5
Vwo 5
Vnq 5
Bnd 10
it seems to me that it is complex, help simplify.
maybe so:
Voo 65
Vea 10
Vwo 10
Vnq 5
Bnd 10

Thank you all in advance for your help!
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LadyGeek
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Re: I want to simplify my portfolio

Post by LadyGeek »

Welcome!

Do you live in the US? If not, what is the name of your home country?
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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V.T
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Re: I want to simplify my portfolio

Post by V.T »

LadyGeek wrote: Thu Jul 08, 2021 5:58 am Welcome!

Do you live in the US? If not, what is the name of your home country?
Hello! I live in Russia. I plan to move to live in the USA soon. I'm starting to learn English
MishkaWorries
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Re: I want to simplify my portfolio

Post by MishkaWorries »

V.T wrote: Thu Jul 08, 2021 5:07 am
Voo 65
Vea 10
Vwo 10
Vnq 5
Bnd 10

Thank you all in advance for your help!
Looks good.

I prefer VTI (Vanguard's Total Stock Market) for exposure to small cap stocks. VOO and VTI perform about the same so no big difference.

Any reason your are using VEA and VWO? Why not VXUS (Vanguard international except US)?

Do you need VNQ? You already have real estate exposure and 5% won't make much difference either way.

For simplicity I would use:

VTI 70
VXUS. 20
BND. 10
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LadyGeek
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Re: I want to simplify my portfolio [Russia]

Post by LadyGeek »

V.T wrote: Thu Jul 08, 2021 6:27 am Hello! I live in Russia. I plan to move to live in the USA soon. I'm starting to learn English
Your funds trade in the US market. How did you purchase your funds? Do you have a US residence, or did you purchase those funds with a broker, such as Interactive Brokers?

I moved this thread to the Non-US Investing forum (Russia). This forum has the experience of members who live outside the US. I have also added the home country to the thread title.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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Re: I want to simplify my portfolio

Post by TedSwippet »

V.T wrote: Thu Jul 08, 2021 6:27 am I plan to move to live in the USA soon.
Welcome. You may find the following wiki page useful:

US tax pitfalls for a non-US person moving to the US - Bogleheads
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V.T
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Voo sell, Vti buy???

Post by V.T »

[V.T -- I merged this post into your earlier thread to keep all the replies together and to help the members give you better responses. -- moderator oldcomputerguy]

Hello! optimizing the portfolio.
was:
Voo 50
Qqq 10
Vb 5
Vea 10
Mchi 5
Vwo 5
Vnq 5
Bnd 10

will be:
Voo55
Qqq 10
Vea 10
Vwo 10
Vnq 5
Bnd 10

1) Is it worth changing voo to vti, if I sell voo, then there will be a tax, is it worth doing?
2) it is worth keeping qqq or selling and buying voo?
3) it is worth keeping vnq or selling and buying voo?

Final:
Voo 70 vs Vti 70 ?
Vea 10
Vwo 10
Bnd 10
jg12345
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Re: I want to simplify my portfolio [Russia]

Post by jg12345 »

Hi,
Given these are your first posts, I suggest you give a read to the excellent boglewiki pages.

Simplest for you would be:
VT 90
BND 10

Other points:

Do consider TedSwippet post about tax.

If using EUR ETFs, then Vanguard FTSE all-world (acc) for the stock part would be the ideal for you.

You do not say where you plan to retire, so it's hard to suggest a specific ETF for bonds. FYI, the usual suggestion is that you should hedge your bonds to the currency of the country where you think you will be retiring, if possible.
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Re: I want to simplify my portfolio [Russia]

Post by GrowthSeeker »

Check out this page in the wiki where it says "Approximating total stock with two funds".
By adding some VXF to your existing VOO you can approach the equivalent of Vanguard Total Stock Market ETF (VTI)

82% Vanguard 500 Index Fund (VFIAX or VOO)
18% Vanguard Extended Market Index Fund (VEXAX or VXF)

VTI = 82% VOO + 18% VXF

So this could be done with future purchases if you wish to have VTI instead of VOO. Just incrementally buy shares of VXF instead of VOO.
However, the difference in performance over the long term between VTI and VOO is likely to be not very much difference at all.
Just because you're paranoid doesn't mean they're NOT out to get you.
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V.T
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Re: I want to simplify my portfolio [Russia]

Post by V.T »

jg12345 wrote: Mon Jul 12, 2021 7:41 am Hi,
Given these are your first posts, I suggest you give a read to the excellent boglewiki pages.

Simplest for you would be:
VT 90
BND 10

Other points:

Do consider TedSwippet post about tax.

If using EUR ETFs, then Vanguard FTSE all-world (acc) for the stock part would be the ideal for you.

You do not say where you plan to retire, so it's hard to suggest a specific ETF for bonds. FYI, the usual suggestion is that you should hedge your bonds to the currency of the country where you think you will be retiring, if possible.
I am planning to retire in 20-25 years in the usa if it works out! Every 5 years I plan to increase the share of bonds by 5-6%.
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V.T
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Re: I want to simplify my portfolio [Russia]

Post by V.T »

GrowthSeeker wrote: Mon Jul 12, 2021 7:55 am Check out this page in the wiki where it says "Approximating total stock with two funds".
By adding some VXF to your existing VOO you can approach the equivalent of Vanguard Total Stock Market ETF (VTI)

82% Vanguard 500 Index Fund (VFIAX or VOO)
18% Vanguard Extended Market Index Fund (VEXAX or VXF)

VTI = 82% VOO + 18% VXF

So this could be done with future purchases if you wish to have VTI instead of VOO. Just incrementally buy shares of VXF instead of VOO.
However, the difference in performance over the long term between VTI and VOO is likely to be not very much difference at all.
I'm more inclined to hold VOO. I have doubts about keeping QQQ and VNQ for a long time? VB I decided to sell.
Last edited by V.T on Mon Jul 12, 2021 11:23 am, edited 1 time in total.
jg12345
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Re: I want to simplify my portfolio [Russia]

Post by jg12345 »

V.T wrote: Mon Jul 12, 2021 9:52 am
jg12345 wrote: Mon Jul 12, 2021 7:41 am Hi,
Given these are your first posts, I suggest you give a read to the excellent boglewiki pages.

Simplest for you would be:
VT 90
BND 10

Other points:

Do consider TedSwippet post about tax.

If using EUR ETFs, then Vanguard FTSE all-world (acc) for the stock part would be the ideal for you.

You do not say where you plan to retire, so it's hard to suggest a specific ETF for bonds. FYI, the usual suggestion is that you should hedge your bonds to the currency of the country where you think you will be retiring, if possible.
I am planning to retire in 20-25 years in the usa if it works out! Every 5 years I plan to increase the share of bonds by 5-6%.
Sounds good. If there is a high probability that you'll retire in USA, for the bond part I would suggest to hedge to US$.
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V.T
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Re: I want to simplify my portfolio [Russia]

Post by V.T »

jg12345 wrote: Mon Jul 12, 2021 11:03 am
V.T wrote: Mon Jul 12, 2021 9:52 am
jg12345 wrote: Mon Jul 12, 2021 7:41 am Hi,
Given these are your first posts, I suggest you give a read to the excellent boglewiki pages.

Simplest for you would be:
VT 90
BND 10

Other points:

Do consider TedSwippet post about tax.

If using EUR ETFs, then Vanguard FTSE all-world (acc) for the stock part would be the ideal for you.

You do not say where you plan to retire, so it's hard to suggest a specific ETF for bonds. FYI, the usual suggestion is that you should hedge your bonds to the currency of the country where you think you will be retiring, if possible.
I am planning to retire in 20-25 years in the usa if it works out! Every 5 years I plan to increase the share of bonds by 5-6%.
Sounds good. If there is a high probability that you'll retire in USA, for the bond part I would suggest to hedge to US$.
Will it be tedious to bring the share of BND to 40% of the portfolio by retirement?
jg12345
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Re: I want to simplify my portfolio [Russia]

Post by jg12345 »

I do not believe so, there's plenty of information about how to do that on boglewiki.

You can rebalance, or increase the share of bonds purchases, or both. I would suggest to move following some sort of glidepath rather than doing it in one go.
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