Discussion

Jeanette from CA posted over 3 years ago:

I have a mix of index (Vanguard) and active management---8 with Vanguard and a total of 12 funds - with addition of one Total Bond Market Vanguard and a money market fund..
The funds outside of Vanguard are American Funds and Templeton Global transferred to my IRA from 403B at work when I retired..and I did not pay commissions-- they provide more non-US exposure..

Our assets are over 1 million-??? does higher $ amount allow for more that suggested 8 funds????
- - our desire is to stay with funds (not individual stocks, for personal comfort)
As I am new to AAII- will there be a comment from the author or another reader on this question? thanks


Paul from CA posted over 3 years ago:

In my opinion the article reflects some good principles in keeping the number limited so the investor can keep better track of what is happening to their investments and to minimize overlap of fund objectivess. I am partial to Vanguard for their low expense ratios.


T Chiao from CA posted about 1 year ago:

Hi,
I have hard time to limit funds to 8. In fact I am seriously considering following professor Isaelsen's research using 12 as reported in:
WWW.7Twelve.Portfolio.Com
Welcome your comments.
TTC


James Smith from ME posted about 1 year ago:

Ric Edelman, "Rescue Your Money," lists an example of a truly diversified portfolio as having 16 different sectors and gives his supporting reasons for that number.


Paul Tichler from NY posted about 1 year ago:

Your advice about the benefits of active management vs. indexing is not borne out by my observations at least with regard to vanguard funds, There seems to be little difference in the long term performance in the midcap area. Also no mention is made of the small cap value premium which seems to persist over long time periods.


Bruce Ayer from Georgia posted about 1 year ago:

I've been running with 5 Mutual funds, 4 Index ETFs, 2 bond funds, and MSFT. The Mutual funds are long time top performers, the ETFs do even better, and MSFT is a low value whim.


Roger Bolger from Ohio posted 11 months ago:

Our self-directed 503-B plan limits my choices to money markets, bonds (no listed term length nor issuer), foreign, large cap, small cap, a stock combination fund, various target funds.
I am currently in the small cap and money market about 50-50 as a will retire at the end of next year. All new money is going into the three stock funds. What should I do?


Justin Murphy from Connecticut posted 10 months ago:

I have 5 Funds/ETF's for a mid 7-figure portfolio. Two Dividend equity (one Fund and one ETF); One Small cap index fund; One Intermdiate Corporate Bond ETF; and one High Yield Bond ETF. Both dividend equity investments have performed well, but I may migrate to just the ETF (once I'm convinced of it's long-term performance) to lower fees. That would leave me with four, which seems like too few, but there is plenty of diversification within each fund, and between the funds.


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